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
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Chapter 2, Problem 2.5E
To determine
Classified
To prepare: Classified balance sheet for Corporation L as at December 31, 2017
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The current sections of Bridgeport Corp.'s balance sheets at December 31, 2016 and 2017, are presented here. Bridgeport Corp.'s net income for 2017 was $153,459. Depreciation expense was $27,081.
2017
2016
Current assets
Cash
$105,315
$ 99,297
Accounts receivable
80,240
89,267
Inventory
168,504
172,516
Prepaid expenses
27,081
22,066
Total current assets
$381,140
$383,146
Current liabilities
Accrued expenses payable
$ 15,045
$ 5,015
Accounts payable
85,255
92,276
Total current liabilities
$100,300
$ 97,291
ember 31, 2017, using
Prepare the net cash provided (used) by operating activities section of the company's statement
(15,000).)
cash flows
or the year ende
indirect
ethod. (Show am
that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g.
Bridgeport Corp.
Partial Statement of Cash Flows
$
Adjustments to reconcile net income to
$
$1
The 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.
These items are taken from the financial statements of Oliver Co. at December 31, 2018.
Buildings
$105,800
Accounts receivable
12,600
Prepaid insurance
3,200
Cash
11,900
Equipment
82,400
Land
61,200
Insurance expense
780
Depreciation expense
5,300
Interest expense
2,600
Common stock
60,000
Retained earnings (January 1, 2017)
40,000
Accumulated depreciation—buildings
45,700
Accounts payable
9,380
Notes payable
93,600
Accumulated depreciation—equipment
18,800
Interest payable
3,600
Service revenue
14,700
Instructions
Prepare a classified balance sheet. Assume that $12,600 of the note payable will be paid in 2019.OLIVER COMPANY
Chapter 2 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
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