Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 3, Problem 3.12E
To determine
Financial disclosure:
Financial disclosure is an important tool which discloses the financial statements of an entity to its investors for investment decision making.
To indicate: the given items should be disclosed in the summary of accounting policies note, in a separate disclosure note or on the face of the balance sheet.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
rq a
Problem 11-12 (Algo) Effect of transactions on liquidity measures LO 1
Selected balance sheet accounts for Tibbetts Company on September 30, 2019, are as follows:
Cash
$
48,000
Marketable securities
135,000
Accounts receivable, net
165,000
Inventory
187,500
Prepaid expenses
21,000
Total current assets
$
556,500
Accounts payable
$
108,000
Other accrued liabilities
26,400
Short-term debt
48,000
Total current liabilities
$
182,400
Required:
Calculate the working capital, current ratio, and acid-test ratio for Tibbetts Company as of September 30, 2019.
Summarized here are the transactions/events that took place during the fiscal year ended September 30, 2020. Prepare journal entries for the below transactions and Indicate the effect of each item on Tibbetts Company's working capital, current ratio, and acid-test ratio. Use + for increase, − for decrease, and (NE) for no effect.
Credit sales for the year…
41
Problem No. 1
AACA Corporation was incorporated on Dec. 1, 2021, and began operations one week later. Before closing the books for the fiscal year ended Nov. 30, 2022, the controller prepared the following financial statements:
AACA Corporation Statement of Financial Position November 30, 2022
Assets
Current assets
Cash
P150,000
Marketable securities, at cost
60,000
Accounts receivable
450,000
Allowance for doubtful accounts
( 59,000)
Inventories
430,000
Prepaid insurance
15,000
Total current assets
1,046,000
Property, plant and equipment
426,000
Less accumulated depreciation
( 40,000)
Property, plant and equipment, net
386,000
Research and development costs
120,000
Total assets
P1,552,000
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued…
Question 8 of 8
-/ 20
View Policies
Current Attempt in Progress
Select financial information from Marshall Inc. is shown below:
2022
2021
Receivables
$423,018
$376,089
less allowance for doubtful accounts
45,890
32,236
Receivables, net
377,128
343,853
Credit sales
5,245,000
4,846,300
Calculate the receivables turnover and the collection period for 2022. (Round answers to 1 decimal place, e.g. 12.3.)
Receivables Turnover Ratio
times
Average Collection Period
days
Save for Later
Attempts: 0 of 1 used
Submit Answer
II
Chapter 3 Solutions
Intermediate Accounting
Ch. 3 - Prob. 3.1QCh. 3 - Prob. 3.2QCh. 3 - Define current assets and list the typical asset...Ch. 3 - Prob. 3.4QCh. 3 - Prob. 3.5QCh. 3 - Prob. 3.6QCh. 3 - Describe the common characteristics of assets...Ch. 3 - Prob. 3.8QCh. 3 - Prob. 3.9QCh. 3 - Define the terms paid-in-capital and retained...
Ch. 3 - Disclosure notes are an integral part of the...Ch. 3 - A summary of the companys significant accounting...Ch. 3 - Define a subsequent event.Ch. 3 - Prob. 3.14QCh. 3 - Prob. 3.15QCh. 3 - Prob. 3.16QCh. 3 - Prob. 3.17QCh. 3 - Show the calculation of the following solvency...Ch. 3 - Prob. 3.19QCh. 3 - Prob. 3.20QCh. 3 - (Based on Appendix 3) Segment reporting...Ch. 3 - Prob. 3.22QCh. 3 - Prob. 3.23QCh. 3 - Current versus long-term classification LO32,...Ch. 3 - Balance sheet classification LO32, LO33 The trial...Ch. 3 - Prob. 3.3BECh. 3 - Balance sheet classification LO32, LO33 Refer to...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet classification LO32, LO33 You have...Ch. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Financial statement disclosures LO34 For each of...Ch. 3 - Calculating ratios LO38 Refer to the trial...Ch. 3 - Prob. 3.10BECh. 3 - Calculating ratios; solving for unknowns LO38 The...Ch. 3 - Balance sheet; missing elements LO32, LO33, LO38...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet classification LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet; Current versus long-term...Ch. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Financial statement disclosures LO34 The...Ch. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - FASB codification research LO32, LO34 Access the...Ch. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Calculating ratios; solve for unknowns LO38 The...Ch. 3 - Prob. 3.19ECh. 3 - Effect of management decisions on ratios LO38...Ch. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Balance sheet preparation LO32, LO33 Presented...Ch. 3 - Balance sheet preparation; missing elements LO32,...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Balance sheet preparation LO32, LO33 The...Ch. 3 - Prob. 3.6PCh. 3 - Balance sheet preparation; errors LO32, LO33 The...Ch. 3 - Balance sheet; errors; missing amounts LO32, LO33...Ch. 3 - Balance sheet preparation LO32 , LO33 Presented...Ch. 3 - Prob. 3.10PCh. 3 - Communication Case 31 Current versus long-term...Ch. 3 - Analysis Case 32 Current versus long- term...Ch. 3 - Prob. 3.4BYPCh. 3 - Judgment Case 35 Balance sheet; errors LO32...Ch. 3 - Prob. 3.6BYPCh. 3 - Real World Case 37 Balance sheet and significant...Ch. 3 - Judgment Case 38 Post fiscal year-end e vents ...Ch. 3 - Prob. 3.9BYPCh. 3 - Prob. 3.10BYPCh. 3 - Prob. 3.11BYPCh. 3 - Analysis Case 314 Balance sheet information LO32...Ch. 3 - Prob. 3.15BYPCh. 3 - Ethics Case 316 Segment reporting Appendix 3 You...Ch. 3 - Prob. 1CCTC
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
- #10 Item Prior year Current year Accounts payable 8,123.00 7,716.00 Accounts receivable 6,048.00 6,607.00 Accruals 997.00 1,500.00 Cash ??? ??? Common Stock 10,094.00 11,603.00 COGS 12,653.00 18,393.00 Current portion long-term debt 4,911.00 5,090.00 Depreciation expense 2,500 2,763.00 Interest expense 733 417 Inventories 4,245.00 4,824.00 Long-term debt 14,141.00 13,226.00 Net fixed assets 51,826.00 54,004.00 Notes payable 4,339.00 9,940.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,688.00 30,532.00 Sales 35,119 45,044.00 Taxes 2,084 2,775 What is the firm's total change in cash from the prior year to the current year? Answer format: Number: Round to: 0 decimal places.arrow_forward#9 Item Prior year Current year Accounts payable 8,123.00 7,716.00 Accounts receivable 6,048.00 6,607.00 Accruals 997.00 1,500.00 Cash ??? ??? Common Stock 10,094.00 11,603.00 COGS 12,653.00 18,393.00 Current portion long-term debt 4,911.00 5,090.00 Depreciation expense 2,500 2,763.00 Interest expense 733 417 Inventories 4,245.00 4,824.00 Long-term debt 14,141.00 13,226.00 Net fixed assets 51,826.00 54,004.00 Notes payable 4,339.00 9,940.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,688.00 30,532.00 Sales 35,119 45,044.00 Taxes 2,084 2,775 What is the firm's cash flow from financing? Answer format: Number: Round to: 0 decimal places.arrow_forwardQUESTION 6 E18.7 E18.7 (LO 3) Nordstrom, Inc. operates department stores in numerous states. Suppose selected financial statement data (in millions) for 2020 are presented below. Compute liquidity ratios. End of Year Beginning of Year Cash and cash equivalents $ 795 $ 72 Accounts receivable (net) 2,035 1,942 Inventory 898 900 Other current assets 326 303 Total current assets $4,054 $3,217 Total current liabilities $2,014 $1,601 For the year, net credit sales were $8,258 million, cost of goods sold was $5,328 million, and net cash provided by operating activities was $1,251 million. Instructions Compute the current ratio, accounts receivable turnover, average collection period, inventory turnover, and days in inventory at the end of the current year.arrow_forward
- Question 69 Using Financial Statements for 2018-2019, the amount of cash and marketable securities at the beginning of the year is $4,998,000. TRUE OR FALSE?arrow_forward(Appendix 21.1) Comprehensive The following are Adair Companys December 31, 2018, post-closing trial balance and the December 31, 2019, adjusted trial balance: A review of the accounting records reveals the following additional information for 2019: Investments in bonds to be held to maturity were purchased at year-end for 8,600. A building was purchased for 28,000. A note payable was issued for 9,000. Common stock was issued for 14,500. Dividends of 6,500 were declared and paid. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support the 2019 statement of cash flows for Adair. 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)arrow_forward31 5:31 2020-Target-Annual-... TARGET CORPORATION 2020 Form 10-K FINANCIAL STATEMENTS REPORTS . 5G 55 Table of Contents Index to Financial Statements Report of Management on the Consolidated Financial Statements Management is responsible for the consistency, integrity, and presentation of the information in the Annual Report. The consolidated financial statements and other information presented in this Annual Report have been prepared in accordance with accounting principles generally accepted in the United States and include necessary judgments and estimates by management. To fulfill our responsibility, we maintain comprehensive systems of internal control designed to provide reasonable assurance that assets are safeguarded and transactions are executed in accordance with established procedures. The concept of reasonable assurance is based upon recognition that the cost of the controls should not exceed the benefit derived. We believe our systems of internal control provide this…arrow_forward
- ACC 122 Fall 2020Comprehensive ProjectBestValue Corporation's Trial Balance at December 31, 20XX is presented below.All 20XX transactions have been recorded except for the items described on the next page.Debit CreditCash $ 109,890Accounts Receivable 28,789Inventory 25,540Debt Investments 0Land 55,674Buildings 215,850Equipment 75,120Allowance for Doubtful Accounts $ 1,027Accumulated Depreciation-Buildings 63,306Accumulated Depreciation-Equipment 16,048Accounts Payable 35,278Interest Payable 0Unearned Rent Revenue 48,900Dividends Payable 0Income Tax Payable 0Bonds Payable 0Discount on Bonds Payable 0Common Stock ($2 par) 29,200Paid in Capital in Excess of Par-Common Stock 44,580Preferred Stock ($60 par) 0Paid in Capital in Excess of Par-Preferred Stock 0Retained Earnings 107,904Treasury Stock 0Cash Dividends 0Sales Revenue 776,068Rent Revenue 0Gain on Sale of Land 0Bad Debt Expense 0Interest Expense 0Cost of Goods Sold 478,542Depreciation Expense 0Other Operating Expenses 53,274Salaries…arrow_forward#6 Item Prior year Current year Accounts payable 8,182.00 7,768.00 Accounts receivable 6,011.00 6,766.00 Accruals Cash Common Stock COGS Current portion long-term debt Depreciation expense Interest expense Inventories Long-term debt 1,022.00 1,542.00 ??? ??? 11,535.00 12,370.00 12,726.00 18,265.00 4,989.00 5,013.00 2,500 2,833.00 733 417 4,158.00 4,820.00 14,080.00 14,452.00 Net fixed assets 51,720.00 54,916.00 Notes payable 4,306.00 9,860.00 Operating expenses (excl. depr.) 13,977 18,172 Retained earnings 28,006.00 29,332.00 Sales 35,119 47,524.00 Taxes 2,084 2,775 What is the firm's total change in cash from the prior year to the current year? Submit Answer format: Number: Round to: 0 decimal places.arrow_forwardPLEASE ANSWER ASAP Problem No. 1 AACA Corporation was incorporated on Dec. 1, 2021, and began operations one week later. Before closing the books for the fiscal year ended Nov. 30, 2022, the controller prepared the following financial statements: AACA Corporation Statement of Financial Position November 30, 2022 Assets Current assets Cash P150,000 Marketable securities, at cost 60,000 Accounts receivable 450,000 Allowance for doubtful accounts ( 59,000) Inventories 430,000 Prepaid insurance 15,000 Total current assets 1,046,000 Property, plant and equipment 426,000 Less accumulated depreciation ( 40,000) Property, plant and equipment, net 386,000 Research and development costs 120,000 Total assets P1,552,000 Liabilities and Shareholders' Equity Current liabilities Accounts payable and accrued expenses P 592,000…arrow_forward
- E 13-20 Various transactions involving contingencies LO13-5, LO13-6 The following selected transactions relate to contingencies of Classical Tool Makers, Inc., which began operations in July 2021. Classical's fiscal year ends on December 31. Financial statements are issued in April 2022. Required: Prepare the year-end entries for any amounts that should be recorded as a result of each of these contingencies and indicate whether a disclosure note is indicated. 1. Classical's products carry a one-year warranty against manufacturer's defects. Based on previous experience, warranty costs are expected to approximate 4% of sales. Sales were $2 million (all credit) for 2021. Actual warranty expenditures were $30,800 and were recorded as warranty expense when incurred. 2. Although no customer accounts have been shown to be uncollectible, Classical estimates that 2% of credit sales will eventually prove uncollectible.arrow_forwardQuestion 12 of 20 Which one of the following statements is NOT true? A. Details from the purchases journal are posted to the debtors ledger. B. Details from the sales journal are posted to the debtors ledger. C. When subsidiary journals for a month have been completed, the joumal columns are added up and the totals are posted to the general ledger. D. The combined totals of the individual accounts contained in the debtors ledger must balance with the balance of the debtors contral account in the general ledger.arrow_forward#9 Item Prior year Current year Accounts payable 8,122.00 7,930.00 Accounts receivable 6,011.00 6,556.00 Accruals 1,028.00 1,686.00 Cash ??? ??? Common Stock 11,889.00 11,432.00 COGS 12,613.00 18,213.00 Current portion long-term 4,995.00 4,975.00 debt Depreciation expense 2,500 2,793.00 Interest expense 733 417 Inventories 4,294.00 4,819.00 Long-term debt 13,601.00 13,831.00 Net fixed assets 50,018.00 54,610.00 Notes payable 4,367.00 9,942.00 Operating expenses (excl. 13,977 18,172 depr.) Retained earnings 28,908.00 30,580.00 Sales 35,119 45,307.00 Тахes 2,084 2,775 What is the firm's cash flow from investing? Submit Answer format: Number: Round to: 0 decimal places.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Accounting (Text Only)AccountingISBN:9781285743615Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningFinancial & Managerial AccountingAccountingISBN:9781285866307Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
- Survey of Accounting (Accounting I)AccountingISBN:9781305961883Author:Carl WarrenPublisher:Cengage LearningIntermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Accounting (Text Only)
Accounting
ISBN:9781285743615
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Survey of Accounting (Accounting I)
Accounting
ISBN:9781305961883
Author:Carl Warren
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning