Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 6, Problem 6.5P
Prepare Stockholders’ Equity Section of
| Account | Debit | Credit |
| Loss on disposal of plant assets | $ 740 | |
| Dividends | 790 | |
| Cost of goods sold | 548,450 | |
| Selling expenses | 70,515 | |
| Dividend income | $ 65 | |
| Advertising expense | 39,175 | |
| Office salaries expense | 6,268 | |
| 94,020 | ||
| loss on asset impairment | 3,250 | |
| Accounting and legal fees | 15,600 | |
| Interest income | 712 | |
| Unrealized loss on available-for-sale bonds before tax | 450 | |
| interest expense | 9,600 | |
| Sales | 783,500 | |
| 368,900 | ||
| Accumulated other comprehensive loss: beginning balance | 5,700 | |
| Common stock - no par: beginning balance | 85,800 |
Society Teas issued $5,400 of no-par common stock on April 1 of the current year.
Required
Prepare the stockholders’ equity section of the balance sheet at December 31 of the current year ignore taxes.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Operating activities:
Net earnings
Non-cash items
Add: Depreciation
LAURENT COMPANY
Statement of Cash Flows
For the year 31 December 20X8
Changes to working ital:
Add: Decrease in accounts receivable
Less: Increase in accounts payable
Less: Increase in inventory
Investing activities:
Decrease in long-term bank loan
Purchase of long-term investment
Financing activities:
Sold long-term investment
Paid cash dividend
Net change in cash
Opening cash
Closing cash
Chemisie
ہے
The current year financial statements for Blue Water Company and Prime Fish Company are presented below.
Balance sheet
Cash
Accounts receivable (net)
Inventory
Property & equipment (net)
Blue Water
Prime Fish
$ 42,400
45,000
$ 19,600
35,200
Other assets
Total assets
Current liabilities
Long-term debt (interest rate: 10%)
Capital stock ($10 par value)
Additional paid-in capital
Retained earnings
Total liabilities and stockholders' equity
$ 425,800
Income statement
Sales revenue (1/3 on credit)
Cost of goods sold
Operating expenses
Net income
Other data
Per share stock price at end of current year
Average income tax rate
$ 426,000
(234,000)
(163,800)
92,000
161,000
85,400
$ 425,800
$ 92,000
74,800
157,800
30,400
70,800
48,400
417,800
319,000
$ 840,000
$ 70,000
62,800
526,000
107,400
73,800
$ 840,000
$ 788,000
(401,400)
(312,400)
$ 28,200
$ 74,200
$ 23.4
30%
$ 29
30%
Dividends declared and paid in current year
$ 34,400
$ 155,000
Both companies are in the fish catching and manufacturing…
Compute for the Current Assets.
Chapter 6 Solutions
Intermediate Accounting
Ch. 6 - What are the limitations of the balance sheet?Ch. 6 - What does a firms liquidity measure?Ch. 6 - Prob. 6.3QCh. 6 - What are the four major components of stockholders...Ch. 6 - Prob. 6.5QCh. 6 - Prob. 6.6QCh. 6 - Where is accumulated other comprehensive income...Ch. 6 - Prob. 6.8QCh. 6 - Prob. 6.9QCh. 6 - What are the two main balance sheet formats?...
Ch. 6 - Prob. 6.11QCh. 6 - Prob. 6.12QCh. 6 - What are the two formatting options for reporting...Ch. 6 - What is financial statement articulation?Ch. 6 - How is net income closed? Is the closing entry the...Ch. 6 - Why are the notes to the financial statements an...Ch. 6 - Prob. 6.17QCh. 6 - What is a subsequent event?Ch. 6 - What is a subsequent event under IFRS?Ch. 6 - How do firms report a material subsequent event on...Ch. 6 - Prob. 6.21QCh. 6 - Prob. 6.22QCh. 6 - Prob. 6.23QCh. 6 - Prob. 6.24QCh. 6 - Prob. 6.25QCh. 6 - Prob. 6.26QCh. 6 - Prob. 6.27QCh. 6 - Prob. 6.28QCh. 6 - Prob. 6.29QCh. 6 - Prob. 6.30QCh. 6 - Who is responsible for designing and implementing...Ch. 6 - Prob. 6.32QCh. 6 - What are the two key measures of liquidity?...Ch. 6 - What does the debt-to-equity ratio measure for a...Ch. 6 - What does a high current ratio indicate about a...Ch. 6 - Is it useful to compare working capital among...Ch. 6 - Sykes Corporations comparative balance sheets at...Ch. 6 - During Year 1, Brianna Company had the following...Ch. 6 - Which of the following items would not be included...Ch. 6 - Kong Co. purchased a three-month U.S. Treasury...Ch. 6 - Prob. 6.5MCCh. 6 - Prob. 6.6MCCh. 6 - In its year-end income statement, Black Knights...Ch. 6 - On is current year income statement, Vegas...Ch. 6 - Advantages of the Statement of Financial Position....Ch. 6 - Prob. 6.2BECh. 6 - Prob. 6.3BECh. 6 - Account Classification: Current and Noncurrent...Ch. 6 - Classified Balance Sheet. Armstrong Associates...Ch. 6 - Classified Balance Sheet, Report Format. Martell...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classified Balance Sheet. Report Format.Bowe...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Prob. 6.11BECh. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Prob. 6.18BECh. 6 - Statement of Cash Flows, Indirect Method. Identity...Ch. 6 - Financial Statement Articulation. Complete the...Ch. 6 - Prob. 6.21BECh. 6 - Prob. 6.22BECh. 6 - Prob. 6.23BECh. 6 - Prob. 6.24BECh. 6 - Statement of Cash Flows, Indirect Method. Tennis...Ch. 6 - Statement of Cash Flows, Direct Method. Use the...Ch. 6 - Prob. 6.27BECh. 6 - Ratio Analyses. Green Grasshopper Incorporated is...Ch. 6 - Classification of Assets and Liabilities. Darin...Ch. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Prob. 6.4ECh. 6 - Prepare Balance Sheet. Blackburn Building Products...Ch. 6 - Prepare Balance Sheet. Lake Company provided the...Ch. 6 - Statement of Cash Flows, Indirect Method. Tulsa...Ch. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Financial Statement Articulation. Use the...Ch. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Prob. 6.18ECh. 6 - Prepare Balance Sheet. Larkin Corporation provided...Ch. 6 - Prob. 6.2PCh. 6 - Prepare Balance Sheet. Jennings Incorporated...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Classified Balance Sheet.Centre Company...Ch. 6 - Prob. 6.7PCh. 6 - Prob. 6.8PCh. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Statement of Cash Flows, Indirect Method. Prepare...Ch. 6 - Prob. 6.13PCh. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Prob. 6.16PCh. 6 - Prob. 1JCCh. 6 - Prob. 1FSACCh. 6 - Prob. 1SSCCh. 6 - Surfing the Standards Case 2: True and Fair...Ch. 6 - Basis for Conclusions Cases Basis for Conclusions...Ch. 6 - Prob. 2BCC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The following information pertains to Concord Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets: Cash and short-term investments Accounts receivable (net) Inventory 17,000 $38,000 30,000 Property, plant, and equipment215,000 Total Assets $300,000 Liabilities and Stockholders' Equity: Current liabilities Long-term liabilities $58,000 91,000 Stockholders' equity-common 151,000 Total Liabilities and Stockholders' Equity Income Statement: Sales revenue $80,000 Cost of goods sold 47,000 Gross margin 33,000 Operating expenses 19,000 Net income $14,000 Number of shares of common stock 4,000 Market price of common stock $21 Dividends per share on common stock 0.90 Cash provided by operations $27,000 $300,000 What is the price-earnings ratio for this company? The EPS (earnings per share) of Dominica Inc. is Rs. 120. If the average Price-Earnings ratio of comparable firms is 39.2, estimate the value of…arrow_forwardUse the following information from Dubuque Company's financial statements. From the Dec.31, 2018 balance sheet, changes from prior year: Accounts Receivable $8,600 Inventory 3,400 Prepaid Insurance (2,200) Accounts Payable (4,000) Sales Tax Payable 1,900 From the 2018 Income Statement: Gain From Sale of Investments $12,000 Depreciation Expense 26,500 Net Income 79,300 Prepare the operating activities section of the statement of cash flows (indirect method) for the year 2018. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments. Dubuque Company Partial Statement of Cash Flows (Indirect Method) For the Year Ended December 31, 2018 Operating Activities: Net Income Depreciation Expense Gain From Sale of Investments Accounts Receivable, Inventory %24arrow_forwardFollowing is the balance sheet of Thornton Company for Year 3: THORNTON COMPANY Balance sheet Assets Cash $ 15,050 Marketabhe securities Accounts receivable Inventory Property and equipment Accumulated depreciation 8,380 13,340 11,050 165,500 (12,300) Total assets $201,020 Liabilities and Stockholders' Equity Accounts payable Current notes payable Mortgage payable Bonds payable Common stock Retained earnings 8,750 3,200 4,100 21,840 113,300 49,830 Total liabilities and stockholders' equity $201,020 The average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $15,300. Required Compute each of the following: (Round your answer to 2 decimal places. For percentages, O.2345 should be entered as 23.45.) a. Current ratio b. Earnings per share per share c. Quick (acid-test) ratio d. Return on investment e. Return on equity f. Debt to equity ratioarrow_forward
- Given the following account information for Leong Corporation, prepare a statement of financial position in report form for the company as of December 31, 2012. All accounts have normal balances. Equipment ¥ 40,000 Interest Expense 2,400 Interest Payable 600 Retained Earnings ? Dividends 50,400 Land 137,320 Inventory 102,000 Bonds Payable 78,000 Notes Payable (due in 6 months) 14,400 Share capital–ordinary 60,000 Accumulated Depreciation - Eq. 10,000 Prepaid Advertising 5,000 Revenue…arrow_forwardPreparing the Operating Activities Section The data below were provided by the accounting records of Franklin Company. Net income (accrual basis) $104,000 Depreciation expense 20,800 Decrease in salaries payable 3,120 Decrease in trade accounts receivable 4,680 Increase in merchandise inventory 6,500 Amortization of patent 260 Increase in long-term liabilities 26,000 Sale of capital stock for cash 65,000 Amortization of premium on bonds payable 520 Accounts payable increase 10,400 Stock dividend issued 26,000 Required Prepare the reconciliation of net income with cash flow from operations for inclusion in the statement of cash flows (indirect method). Note: If an item is not included in the operating activities section, leave the answer blank (zero). Cash flows from Operating Activities Net income Answer Adjustments: Depreciation expense Answer Amortization expense—patent Answer Amortization of premium on bonds payable…arrow_forwardFollowing is a list of balance sheet accounts for Branman Co. as of December 31, 2018. Solve, a. Classify each of the following accounts as an asset, liability, or net worth. b. What is the balance in the Retained Earnings account if the data forms a valid balance sheet?arrow_forward
- Comparative financial statements for Weaver Company follow: Weaver CompanyComparative Balance Sheetat December 31 This Year Last Year Assets Cash $ 15 $ 11 Accounts receivable 291 229 Inventory 152 194 Prepaid expenses 9 5 Total current assets 467 439 Property, plant, and equipment 503 425 Less accumulated depreciation (81) (71) Net property, plant, and equipment 422 354 Long-term investments 29 35 Total assets $ 918 $ 828 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 224 Accrued liabilities 71 78 Income taxes payable 72 63 Total current liabilities 445 365 Bonds payable 199 170 Total liabilities 644 535 Common stock 160 201 Retained earnings 114 92 Total stockholders’ equity 274 293 Total liabilities and stockholders' equity $ 918 $ 828 Weaver CompanyIncome StatementFor This Year Ended December 31 Sales $ 750 Cost of goods sold 446 Gross margin 304 Selling and administrative expenses…arrow_forwardThe following information pertains to Diana Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Line Item Description Amount Cash and short-term investments $36,084 Accounts receivable (net) 26,488 Inventory 39,031 Property, plant, and equipment 284,840 Total Assets $386,443 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $64,429 Long-term liabilities 91,237 Common stock 175,317 Retained earnings 55,460 Total liabilities and stockholders' equity $386,443 Income Statement Line Item Description Amount Sales $88,296 Cost of goods sold 35,318 Gross margin $52,978 Operating expenses (20,439) Interest expense (4,415) Net income $28,124 Line Item Description Amount Number of shares of common stock outstanding 5,546 Market price of common stock $29 Total dividends paid $9,000 Cash provided by operations…arrow_forwardMaguindanao Computer, Inc., reports the following statement of financial position amounts as of June 30,2020 Current asset P 2,440,500 Noncurrent assets 6,285,500 Current liabilities 1,386,000 Noncurrent liabilities 900,000 Owner’s equity 6,440,000 A review of account balances reveals the following data a. An analysis of current assets discloses the following: Cash P 422,500 Investment securities-trading 600,000 Trade accounts receivable 568,000 Inventories, including advertising supplies of P20,000 850,000 2,440,500 b. Noncurrent assets include the following: Property, plant and equipment: Depreciated book value (cost P 6,560,000) 5,490,000 Deposit with a supplier for merchandise…arrow_forward
- Maguindanao Computer, Inc., reports the following statement of financial position amounts as of December 31, 2020 Current asset P 2,440,500 Noncurrent assets 6,285,500 Current liabilities 1,386,000 Noncurrent liabilities 900,000 Owner’s equity 6,440,000 A review of account balances reveals the following data An analysis of current assets discloses the following: Cash P 422,500 Investment securities-trading 600,000 Trade accounts receivable 568,000 Inventories, including advertising supplies of P20,000 850,000 2,440,500 2. Noncurrent assets include the following: Property, plant and equipment: Depreciated book value (cost P 6,560,000) 5,490,000 Deposit with a supplier for…arrow_forwardThe trial balanGe of Lakewood Inc. included the following accounts as of December 31, 2021 Debits Credits 1, 700, 000 78,000 48, 000 Sales revenue Interest revenue Gain on sale of investments Cest of geods sold Selling expense Loss on inventory write-down Interest expense General and administrative expense 1, 020, 000 210,000 28,000 38,000 148,000 Lakewood Inc, had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The Required Prepare a single-step income statement with eamiags per share disclostre. (Round Earnings per shate answer to2 decimal places:) LAKEWOOD ING Income Statement For the Year Ended December $1 2021 Revendes andgainsarrow_forward(The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current 2 Ago At December 31 Assets Cash Accounts receivable , not Merchandise inventory Prepaid expenses plant assets , net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock , $10 par value Retained earnings Total liabilities and equity $ 29,353 81, 770 101,772 260,853 $483.017 $ 33,312 $ 34, 57 , 47,192 76,263 50,269 3,894 240, 188 214, 793 $ 416,394 $ 350, 500 $121,474$ 0, 3 45,341 89, 899 162,500 (109, 144)/(5483, 017) 94.813 75,137 162,500 162,500 88.210 $ 416,394 $ 350,500arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License