Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 2, Problem 2.1ADIE
To determine
Assets: These are the resources owned and controlled by business and used to produce benefits for the company. Assets are classified on the balance sheet as current assets, long-term investments, property, plant, and equipment, and intangible assets.
To prepare: Assets section of balance sheet for Corporation C as at December 31, 2017
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
The condensed financial statements of Marks Company for the years 2017-2018 are presented below:
Marks CompanyComparative Balance SheetsAs of December 31, 2017 and 2018
2018
2017
Cash
$404,000
$155,000
Accounts receivable (net)
356,000
300,000
Inventories
375,000
339,000
Plant and equipment
1,830,000
1,121,000
Accumulated depreciation
(260,000
)
(193,000
)
$2,705,000
$1,722,000
Accounts payable
$339,000
$164,000
Dividends payable
-0-
45,000
Bonds payable
405,000
-0-
Common stock ($10 par)
1,521,000
1,230,000
Retained earnings
440,000
283,000
$2,705,000
$1,722,000
Additional data:
Market value of stock at 12/31/18 is $80 per share.
Marks sold 30,000 shares of common stock at par on July 1, 2018.
Marks CompanyCondensed…
Presented below are a number of balance sheet items for Culver, Inc. for the current year, 2017.
Goodwill
$ 211,800
Accumulated depreciation-equipment
$ 467,100
Payroll taxes payable
67,100
Inventory
400,400
Bonds payable
501,800
Rent payable (short-term)
41,800
Discount on bonds payable
35,100
Income tax payable
112,600
Cash
62,800
Rent payable (long-term)
81,800
Land
352,800
Common stock, $1 par value
251,800
Notes receivable
162,300
Preferred stock, $25 par value
1,251,800
Notes payable (to banks)
266,700
Prepaid expenses
70,560
Accounts payable
348,800
Equipment
1,387,800
Retained earnings
?
Equity investments (trading)
376,800
Income taxes receivable
47,400
Accumulated depreciation-buildings
361,300
Unsecured notes payable (long-term)
1,301,800
Buildings
2,801,800
Prepare a classified balance sheet in good form. Common stock…
Pharoah Corporation has collected the following information related to its December 31, 2022, balance sheet. Accounts receivable $16,500 Equipment $175,000 Accumulated depreciation—equipment 52,700 Inventory 59,000 Cash 19,500 Supplies 7,000 Prepare the assets
section of Pharoah Corporation’s balance sheet. (List Current Assets in order of liquidity.)
Chapter 2 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Ch. 2 - What is meant by the term operating cycle?Ch. 2 - Define current assets. What basis is used for...Ch. 2 - Prob. 3QCh. 2 - Prob. 4QCh. 2 - Prob. 5QCh. 2 - Prob. 6QCh. 2 - Prob. 7QCh. 2 - Prob. 8QCh. 2 - What do these classes of ratios measure? (a)...Ch. 2 - Prob. 10Q
Ch. 2 - Prob. 11QCh. 2 - Prob. 12QCh. 2 - (a) What is the primary objective of financial...Ch. 2 - Merle Hawkins, the president of Pathway Company,...Ch. 2 - Prob. 15QCh. 2 - Prob. 16QCh. 2 - Prob. 17QCh. 2 - Prob. 18QCh. 2 - What is the economic entity assumption? Give an...Ch. 2 - Prob. 20QCh. 2 - The following are the major balance sheet...Ch. 2 - Prob. 2.2BECh. 2 - Prob. 2.3BECh. 2 - Prob. 2.4BECh. 2 - Prob. 2.5BECh. 2 - Prob. 2.6BECh. 2 - Prob. 2.7BECh. 2 - Prob. 2.8BECh. 2 - Here are some qualitative characteristics of...Ch. 2 - Prob. 2.10BECh. 2 - Prob. 2.1ADIECh. 2 - Prob. 2.1BDIECh. 2 - Prob. 2.2DIECh. 2 - The following characteristics, assumptions,...Ch. 2 - Prob. 2.1ECh. 2 - The major balance sheet classifications are listed...Ch. 2 - Prob. 2.3ECh. 2 - Prob. 2.4ECh. 2 - Prob. 2.5ECh. 2 - Prob. 2.6ECh. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Nordstrom, Inc. operates department stores in...Ch. 2 - Prob. 2.10ECh. 2 - Prob. 2.11ECh. 2 - Prob. 2.12ECh. 2 - Prob. 2.13ECh. 2 - Prob. 2.1APCh. 2 - Prob. 2.2APCh. 2 - Prob. 2.3APCh. 2 - Prob. 2.4APCh. 2 - Prob. 2.5APCh. 2 - Prob. 2.6APCh. 2 - Prob. 2.7APCh. 2 - Prob. 2.8APCh. 2 - Prob. 2.1EYCTCh. 2 - Prob. 2.2EYCTCh. 2 - Prob. 2.3EYCTCh. 2 - Prob. 2.4EYCTCh. 2 - Prob. 2.7EYCTCh. 2 - Prob. 2.8EYCTCh. 2 - Prob. 2.9EYCTCh. 2 - ETHICS CASE At one time, Boeing closed a giant...Ch. 2 - In what ways does the format of a statement of...Ch. 2 - Prob. 2.2IFRSCh. 2 - Prob. 2.3IFRSCh. 2 - Prob. 2.4IFRSCh. 2 - Prob. 2.5IFRS
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 current sections of Teal Mountain Inc.’s balance sheets at December 31, 2016 and 2017, are presented here. Teal Mountain Inc.’s net income for 2017 was $156,366. Depreciation expense was $27,594. 2017 2016Current assets Cash $107,310 $ 101,178Accounts receivable 81,760 90,958Inventory 171,696 175,784Prepaid expenses 27,594 22,484Total current assets $388,360 $390,404Current liabilities Accrued expenses payable $ 15,330 $ 5,110Accounts payable 86,870 94,024Total current liabilities $102,200 $ 99,134 Prepare the net cash provided (used) by operating activities section of the company’s statement of cash flows for the year ended December 31, 2017, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)arrow_forwardThe condensed financial statements of Underwood Company for the years 2017 and 2018 are presented as follows. (Amounts in thousands.) UNDERWOOD COMPANYBalance SheetsDecember 31 2018 2017 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 470 400 Inventory 460 390 Prepaid expenses 120 160 Total current assets 1,380 1,310 Investments 10 10 Property, plant, and equipment 420 380 Intangibles and other assets 530 510 Total assets $2,340 $2,210 Current liabilities $900 $790 Long-term liabilities 410 380 Stockholders’ equity—common 1,030 1,040 Total liabilities and stockholders’ equity $2,340 $2,210 UNDERWOOD COMPANYIncome StatementsFor the Years Ended December 31 2018 2017 Sales revenue $3,800 $3,460 Costs and expenses Cost of goods sold 955 890 Selling & administrative expenses…arrow_forwardThe current sections of Bramble Inc.’s balance sheets at December 31, 2021 and 2022, are presented here. Bramble’s net income for 2022 was $151,400. Depreciation expense was $27,200. 2022 2021 Current assets Cash $103,000 $97,100 Accounts receivable 80,000 90,800 Inventory 169,000 171,500 Prepaid expenses 26,000 22,000 Total current assets $378,000 $381,400 Current liabilities Accrued expenses payable $14,500 $9,100 Accounts payable 84,500 95,600 Total current liabilities $99,000 $104,700 Prepare the operating activities section of the company’s statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).arrow_forward
- Presented below is the balance sheet of Sheffield Corporation for the current year, 2025. Current assets Investments 643,870 Property, plant, and equipment 1,723,870 Intangible assets 305,000 1. 2. 3. The following information is presented. The current assets section includes cash $153,870, accounts receivable $173,870 less $13,870 for allowance for doubtful accounts, inventories $183,870, and unearned rent revenue $8,870. Inventory is stated on the lower-of-FIFO-cost-or-net realizable value. 4. 5. Sheffield Corporation Balance Sheet December 31, 2025 $ 488,870 6. 7. $3,161,610 Current liabilities Long-term liabilities Stockholders' equity $ 383,870 1,003,870 1,773,870 $3,161,610 The investments section includes the cash surrender value of a life insurance contract $43,870; investments in common stock, short-term $83,870 and long-term $273,870; and bond sinking fund $242,260. The cost and fair value of investments in common stock are the same. Property, plant, and equipment includes…arrow_forwardThe current sections of Crane Inc.’s balance sheets at December 31, 2021 and 2022, are presented here. Crane’s net income for 2022 was $154,700. Depreciation expense was $26,300. 2022 2021 Current assets Cash $102,700 $97,700 Accounts receivable 79,400 90,000 Inventory 168,200 173,000 Prepaid expenses 26,900 22,900 Total current assets $377,200 $383,600 Current liabilities Accrued expenses payable $15,000 $9,300 Accounts payable 84,000 95,600 Total current liabilities $99,000 $104,900 Prepare the operating activities section of the company’s statement of cash flows for the year ended December 31, 2022, using the indirect methodarrow_forwardThe condensed financial statements of Ivanhoe Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) IVANHOE COMPANYBalance SheetsDecember 3120172016Current assets Cash and cash equivalents$330$360 Accounts receivable (net)640570 Inventory530460 Prepaid expenses120160 Total current assets1,6201,550Investments180180Property, plant, and equipment (net)420380Intangibles and other assets530510 Total assets$2,750$2,620Current liabilities$1,070$960Long-term liabilities480450Stockholders’ equity—common1,2001,210 Total liabilities and stockholders’ equity$2,750$2,620 IVANHOE COMPANYIncome StatementsFor the Year Ended December 3120172016Sales revenue$3,870$3,530Costs and expenses Cost of goods sold1,1251,060 Selling & administrative expenses2,4002,330 Interest expense2520 Total costs and expenses3,5503,410Income before income taxes320120Income tax expense9636Net income$ 224$ 84 Compute the following ratios for 2017 and 2016.…arrow_forward
- The condensed financial statements of Ivanhoe Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) IVANHOE COMPANYBalance SheetsDecember 3120172016Current assets Cash and cash equivalents$330$360 Accounts receivable (net)640570 Inventory530460 Prepaid expenses120160 Total current assets1,6201,550Investments180180Property, plant, and equipment (net)420380Intangibles and other assets530510 Total assets$2,750$2,620Current liabilities$1,070$960Long-term liabilities480450Stockholders’ equity—common1,2001,210 Total liabilities and stockholders’ equity$2,750$2,620 IVANHOE COMPANYIncome StatementsFor the Year Ended December 3120172016Sales revenue$3,870$3,530Costs and expenses Cost of goods sold1,1251,060 Selling & administrative expenses2,4002,330 Interest expense2520 Total costs and expenses3,5503,410Income before income taxes320120Income tax expense9636Net income$ 224$ 84 Compute the following ratios for 2017 and 2016.…arrow_forwardUse the current asset section of the balance sheets of the Waverley Company as of June 30, 2017 and 2016 presented below to answer the questions that follow. 2017 2016Cash and cash equivalents R 75,000 R 58,800Trade accounts receivable, net 157,500 193,200Inventory 208,200 253,400Other current assets 18,400 15,500Total current assets R 459,100 R 520,900Total assets R2,650,000 R3,430,000Required:Complete a horizontal analysis of the current asset section of Waverley Company’s balance sheet for 2017. Your answers for “% Change” should be rounded to one decimal place, e.g.,…arrow_forwardThe following were taken from the books of Amihan Company December 31, 2017: Long-term payable Notes Payable Property, Plant and Equipment Accounts Receivable Accounts Payable Accumulated Depreciation Cash Owner's Capital Unearned Income Notes Receivable Prepaid Expense Inventory Intangible Assets 500,000.00 120,000.00 750,000.00 56,000.00 65,000.00 100,000.00 77,000.00 ? 15,000.00 245,000.00 59,000.00 158,000.00 125,000.00 A. Based on the data given above, identify, classify and compute the following: Current Assets Non Current Assets Total Assets Current Liabilities Non-Current Liabilities Total Liabilities Equity B. Prepare Statement of Financial Position of Amihan Company during year-end.arrow_forward
- The current sections of Scoggin Inc.'s balance sheets at December 31, 2018 and 2019, are presented here. Scoggin's net income for 2019 was $153,000. Depreciation expense was $24,000. 2019 2018 Current assets Cash $105,000 $99,000 Accounts receivable 110,000 89,000 Inventory 158,000 172,000 Prepaid expenses 27,000 22,000 Total current assets $400,000 $382,000 Current liabilities Accrued expenses payable $15,000 $5,000 Accounts payable 85,000 92,000 Total current liabilities $100,000 $97,000 Prepare the net cash provided by operating activities section of the company's statement of cash flows for the cash flow wvith either a sign e.g. -15,000 or in parenthesis e.g. (15,000).)arrow_forwardThe current sections of Waterway Inc's balance sheets at December 31, 2021 and 2022, are presented here. Waterway's net income for 2022 was $150,300. Depreciation expense was $23,900. 2022 2021 Current assets Cash $103,300 $97,000 Accounts receivable 70,400 80,100 Inventory 169,000 172,900 Prepaid expenses 26,900 21,900 Total current assets $369,600 $371,900 Current liabilities Accrued expenses payable $14,000 $6,100 Accounts payable 85,900 92,400 Total current liabilities $99,900 $98,500 Prepare the net cash provided by operating activities section of the company's statement of cash flows for the year ended December 31, 2022, using the indirect method. (Show amounts that decrease cash flow with either a-sign e.g. -15,000 or in parenthesis e.g. (15,000).) WATERWAY INC. Statement of Cash Flows (Partial) - Indirect Method Adjustments to reconcile net income to $arrow_forwardThe following information is taken from French Corporation’s financial statements: December 31 2018 2017 Cash $63,000 $ 27,000 Accounts receivable 102,000 80,000 Allowance for doubtful accounts (4,500) (3,100) Inventory 160,000 175,000 Prepaid expenses 7,500…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
7.2 Ch 7: Notes Payable and Interest, Revenue recognition explained; Author: Accounting Prof - making it easy, The finance storyteller;https://www.youtube.com/watch?v=wMC3wCdPnRg;License: Standard YouTube License, CC-BY