Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be reported as either assets, liabilities or stockholders’ equity. g) Notes payable of $440,000 is due on 31st January, 2020. h) Neptune restricted 50% of its’ total cash of $330,000 to repay a loan after 2 years. i) Neptune has a claim of $60,000 to be received after 2 months against an insurance company for a causality loss. j) Neptune owns an equipment of $35,000 which is currently unused. Instructions: For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders’ equity. Mention the classification as well.
Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be reported as either assets, liabilities or stockholders’ equity. g) Notes payable of $440,000 is due on 31st January, 2020. h) Neptune restricted 50% of its’ total cash of $330,000 to repay a loan after 2 years. i) Neptune has a claim of $60,000 to be received after 2 months against an insurance company for a causality loss. j) Neptune owns an equipment of $35,000 which is currently unused. Instructions: For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders’ equity. Mention the classification as well.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Neptune Corporation is preparing its December 31, 2018,
g) Notes payable of $440,000 is due on 31st January, 2020.
h) Neptune restricted 50% of its’ total cash of $330,000 to repay a loan after 2 years.
i) Neptune has a claim of $60,000 to be received after 2 months against an insurance company for a causality loss.
j) Neptune owns an equipment of $35,000 which is currently unused.
Instructions:
For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders’ equity. Mention the classification as well.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
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.Recommended textbooks for you
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,
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