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 6.7BE
Classified
BE6-6. Classified Balance Sheet, Report Format. Martell Manufacturing Incorporated provided the following list of account balances for the current year ended December 31.
| Account | Debit | Credit |
| $ 300,000 | ||
| Bonds payable, due in 20 years | $ 400,000 | |
| Investments at fair value (trading) | 58,000 | |
| Accounts payable | 175,000 | |
| Additional paid-in capital | 587,000 | |
| Accumulated other comprehensive loss | 165,300 | |
| Current portion of long-term debt | 25,000 | |
| Property, plant, and equipment - net | 1,264,500 | |
| Dividends payable | 135.000 | |
| Merchandise inventory | 254,000 | |
| Income taxes payable | 65,800 | |
| Cash | 145,000 | |
| Notes payable, due in 5 years | 138,500 | |
| 625,500 | ||
| Common stock, $1 par value | — | 35,000 |
| Totals | $2,186,800 | $2,186,800 |
Prepare a classified balance sheet for the current year using the report format.
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1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.
2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2.
3. Determine the carrying amount of the bonds as of December 31, 20Y2.
(Refer to image, thank you!)
1c. Journalize the entries to record the 203 transactions. Refer to the Chart of Accounts for exact wording of account titles. Round all amounts to the nearest dollar.
The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:
Required: 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. 3. Determine the carrying amount of the bonds as of December 31, 20Y2.
Chapter 6 Solutions
Intermediate Accounting (2nd Edition)
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