Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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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.
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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 ($10 par value)
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$ 425,800
Income statement
Sales revenue (1/3 on credit)
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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 (2nd Edition)
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