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 6.6E
Prepare
| Account | Debit | Credit |
| Goods payable, due in 10 years | $ 200,975 | |
| Investments at fair value (current) | $ 25,000 | |
| Accounts payable | 135,000 | |
| Additional paid-in-capital | 400,000 | |
| Dividends payable | 3,700 | |
| Equipment under capital lease | 856,800 | |
| Intangible assets-net | 207,000 | |
| Merchandise inventory | 667500 | |
| Income taxes payable | 32,575 | |
| Cash | 12,750 | |
| Accumulated other comprehensive income | 70,000 | |
| Current portion of long-term debt | 100,000 | |
| Property, plant, and equipment - net | 1,098,000 | |
| Investments in affiliate compares | 43,000 | |
| (noncurrent) | ||
| 60,000 | ||
| Notes payable, due in 5years | 300,000 | |
| 701,735 | ||
| Obligations under capital teases | 210,500 | |
| Obligations under pension plans | 185,400 | |
| 16,000 | ||
| Common stock, $1 par value | 664,715 | |
| Totals | $2,970,050 | $2,970,050 |
Required
- a. Prepare the current-year classified balance sheet using the report format.
- b. Prepare the current year classified balance sheet using the account format.
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Students have asked these similar questions
Calculate the following for Co. XYZ:
c. Average collection period (365 days)
d. Times interest earned
Assets:
Cash and marketable securities $400,000Accounts receivable 1,415,000Inventories 1,847,500Prepaid expenses 24,000Total current assets $3,686,500Fixed assets 2,800,000Less: accumulated depreciation 1,087,500Net fixed assets $1,712,500Total assets $5,399,000Liabilities:
Accounts payable $600,000Notes payable 875,000Accrued taxes Total current liabilities $1,567,000Long-term debt 900,000Owner's equity Total liabilities and owner's equity Co. XYZ Income Statement:
Net sales (all credit) $6,375,000Less: Cost of goods sold 4,375,000Selling and administrative expense 1,000,500Depreciation expense 135,000Interest expense Earnings before taxes $765,000Income taxes Net income Common stock dividends $230,000Change in retained earnings
ABC Company, as of December 31, 2021 provided the following balances:
Cash, net of a P7,000 overdraft
80,000
Receivable, net of customer credit balances totaling P6,000
30,000
Inventory (P20,000 of which are held on consignment
60,000
Prepayments
10,000
Property, plant and equipment, net of accumulated depreciation
of P15,000
90,000
Accounts payable net of debit balances in suppliers' accounts
of P3,000
45,000
Notes payable – bank, due on July 2022
25,000
Income tax payable
15,000
17. Total current assets reported in the December 31, 2021 balance sheet is
a. 176,000
b. 156,000
c. 173,000
d. 170,000
Data extracts from Gamma's accounts are shown below
Turnover
Gross Profit
Expenses
Operating Profit
Interest and Tax
Profit for Year
Non-current assets
Inventory
Receivables
Cash at Bank
Payables
Other Current Liabilities
Net current assets
Shareholder funds
10% Debenture (2030)
Required:
Ye-Dec-20
Ye-Dec-19
18,500
16,000
4,500
4,000
1,500
2,400
3,000
1,600
1,100
700
1,900
900
19,600
16,400
840
640
2,790
1,890
450
350
830
570
340
460
2,910
1,850
15,510
13,250
7,000
5,000
22,510
18,250
A) Calculate the following accounting ratios for each year-end
1) Return on Capital Employed
2) Profit Margin on Sales
3) Gearing Ratio
4) Interest Cover Ratio
5) Return to Shareholders
6) Quick Asset or Acid test Ratio
7) Cash Conversion Period (Operating Cash Cycle)
B) Outline the limitations of accounting ratios
Chapter 6 Solutions
Intermediate Accounting (2nd Edition)
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 - Over what period must management assess the...Ch. 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 - Prob. 6.31QCh. 6 - Who is responsible for designing and implementing...Ch. 6 - Prob. 6.33QCh. 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 - Solvency Analyses. The following items are from...Ch. 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 - Prepare a classified balance sheet at December 31...Ch. 6 - Contents of the Annual Report, Financial Statement...Ch. 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 - UseFoot Locker. Inc.sbalance sheet and other...Ch. 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
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