Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 2, Problem 2.1DA
To determine
Introduction: The financial statements of a company include balance sheet, income statement and cashflow statement. All these statements help the internal and external users of financial statements help in analyzing and concluding about the financial position of the respective company.
To provide: The answers to the analysis.
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Students have asked these similar questions
Owner’s equity represents which of the following?
a. the total of retained earnings plus paid-in capital
b. the sum of the retained earnings and accounts receivable account balances
c. the business owner’s/owners’ share of the company, also known as net worth or net assets
d. the amount of funding the company has from issuing bonds
A) Comment on any significant changes in each company in the composition of current assets and current liabilities. Explain.
b) Which assets in each company have the most significant investment? Why?
c) Are the companies financed primarily with debt or equity? Why?
Illies Corporation's comparative balance sheet appears below:
Beginning
Balance
Assets:
Current assets
Cash and cash equivalents.
Accounts receivable.
Inventory.
Total current assets
Property, plant, and equipment.
Less accumulated depreciation.
Net property, plant, and equipment.
Total assets.
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable.
Accrued wages and salaries payable..
Accrued income taxes payable.
Notes payable.
Total current liabilities.
Long-term debt.
Deferred income taxes.
Total liabilities
Stockholders' equity:
Common stock.
Retained earnings.
Ending
Balance
Select one:
$ 40,000
19,000
O a. $7,000
O b. $40,000
O c. $29,000
O d. $33,000
67,000
126,000 123,000
358,000 339,000
156,000
132,000
202.000
$328,000
$ 33,000
21,000
69,000
$ 18,000
35,000
23,000
207.000
$330,000
23,000
103,000
22,000
102,000
Total stockholders' equity
126,000 124.000
Total liabilities and stockholders' equity.... $328,000 $330.000
$ 19,000
37,000
19,000
19,000 22,000…
Chapter 2 Solutions
Intermediate Accounting, 10 Ed
Ch. 2 - Explain the difference between external events and...Ch. 2 - Each economic event or transaction will have a...Ch. 2 - What is the purpose of a journal? What is the...Ch. 2 - Explain the difference between permanent accounts...Ch. 2 - Describe how debits and credits affect assets,...Ch. 2 - Describe how debits and credits affect temporary...Ch. 2 - What is the first step in the accounting...Ch. 2 - Prob. 2.8QCh. 2 - Prob. 2.9QCh. 2 - Prob. 2.10Q
Ch. 2 - What is an unadjusted trial balance? An adjusted...Ch. 2 - Define adjusting entries and discuss their...Ch. 2 - Define closing entries and their purpose.Ch. 2 - Define prepaid expenses and provide at least two...Ch. 2 - Deferred revenues represent liabilities recorded...Ch. 2 - Define accrued liabilities. What adjusting journal...Ch. 2 - Prob. 2.17QCh. 2 - [Based on Appendix A] What is the purpose of a...Ch. 2 - [Based on Appendix B] Define reversing entries and...Ch. 2 - [Based on Appendix C] What is the purpose of...Ch. 2 - Prob. 2.21QCh. 2 - Transaction analysis LO21 The Marchetti Soup...Ch. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Prob. 2.3BECh. 2 - Journal entries LO22 Prepare journal entries for...Ch. 2 - Adjusting entries LO25 Prepare the necessary...Ch. 2 - Adjusting entries; income determination LO24,...Ch. 2 - Prob. 2.12BECh. 2 - Journal entries LO22 Prepare journal entries to...Ch. 2 - T-accounts and trial balance LO23 Post the...Ch. 2 - Prob. 2.5ECh. 2 - Debits and credits LO22 Indicate whether a debit...Ch. 2 - Prob. 2.7ECh. 2 - Prob. 2.8ECh. 2 - Reversing entries Appendix 2B The employees of...Ch. 2 - Special journals Appendix 2C The White Companys...Ch. 2 - Prob. 2.24ECh. 2 - Prob. 2.3PCh. 2 - Prob. 2.4PCh. 2 - Prob. 2.8PCh. 2 - Prob. 2.12PCh. 2 - Judgment Case 21 Cash versus accrual accounting;...Ch. 2 - Communication Case 23 Adjusting entries LO24 I...Ch. 2 - Prob. 2.1DA
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Similar questions
- Owners equity represents which of the following? A. the amount of funding the company has from issuing bonds B. the sum of the retained earnings and accounts receivable account balances C. the total of retained earnings plus paid-in capital D. the business owners/owners share of the company, also known as net worth or net assetsarrow_forwardWhy does the combined total of the companys liabilities and equity always equal the total of the companys assets?arrow_forwardRetained earnings is accurately described by all except which of the following statements? A. Retained earnings is the primary component of a companys earned capital. B. Dividends declared are added to retained earnings. C. Net income is added to retained earnings. D. Net losses are accumulated in the retained earnings account.arrow_forward
- Attached below is the Balance Sheet of GoodWorld Incorporated Company. Calculate the WACC for the company by using the capital Structure value from the balance sheet. Use the format below to answer your question. Capital Structure 1.Common Stock 2.Preferred Stock 3.Loans / LT debt /Bond 4.Retained Earnings Total ASSETS Current Assets Cash and Cash Equivalents Accounts Receivable Inventory Prepaid Expenses Investment Total Current Assets Amount in Balance Sheet Calculate the WACC: Balance Sheet of GoodWorld Incorporated Company Good World Incorporated Balance Sheet 31-Dec-22 Property & Equipment Land Buildings Equipment Less: Accumulated Depreciation Other Assets Intangible Assets Less: Accumulated Amortization Total Assets $'000 200,000 30,000 20,000 10,000 20,000 280,000 120,000 450,000 100,000 -30,000 40,000 -10,000 Cost 950,000 12% 10% 14% 12% Proposition LIABILITIES & SHAREHOLDERS EQUITY Current Liabilities Accounts Payable Notes Payables Accrued Expenses Deferred Revenue Total…arrow_forwardLiabilities and stockholders' equity are: O increases in assets resulting from profitable operations O economic resources used by a business entity. O sources of financing for economic resources. shown on the income statement in calculating net income.arrow_forwardConsider the following company’s balance sheet and income statement Return on assets. Return on equity.arrow_forward
- Which statement is true? All of a company’s identifiable assets and liabilities appear on the balance sheet. The financial statements are linked with each other. The basic financial statements reflect a complete, accurate, portrayal of the financial performance of a company. The difference between a company’s assets and liabilities should be equal to the market value of the shares owned by investors.arrow_forwardGive typing answer with explanation and conclusion 1. ________ are items owed to a creditor. ________ are items owned by a company. ________ represents owners' claims to company resources. Expenses; Revenues; Net income Expenses; Revenues; Stockholders��� equity Liabilities; Assets; Stockholders' equity Liabilities; Assets; Net incomearrow_forwardThe four major financial statements of a corporation consist of the a. Income statement, balance sheet, statement of cash flows and statement of changes in stockholder's equity b. Balance sheet, statement of cash flows, statement of retained earnings, and income statement c. Income statement, statement of cash flows, statement of owner's equity and balance sheet d. Statement of cash flows, balance sheet, income statement, and statement of capital equityarrow_forward
- Which financial statement shows that a company’s resources equal claims to those resources? a. Income statement.b. Statement of stockholders’ equity.c. Balance sheet.d. Statement of cash flows.arrow_forwardOne of the financial statements is a balance sheet. The balance sheet reflects the assets of the company. Are the assets of the company the true wealth of the shareholders? Why or why not?arrow_forwardWhich of the following are the three basic elements of the balance sheet of a corporation? Group of answer choices A.. Revenues, Expenses and Retained Earnings. B. Assets, Liabilities and Stockholders' Equity. C. Assets, Liabilities and Common Stock. D. Assets, Liabilities and Retained Earnings.arrow_forward
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