Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Textbook Question
Chapter 5, Problem 5.11E
Prepare a Statement of
Bluebird Products, Inc.
Trial Balance (Partial)
For the Year Ended December 31
| Account | Debit | Credit |
| $3,200,950 | ||
| Accumulated Other Comprehensive Income. Beginning Balance Dividends | $76,500 | 95,675 |
| Sales | 2,200,000 | |
| Interest Income | 34,500 | |
| Dividend Income | 12,300 | |
| Gain on Disposal of Plant Assets | 100,500 | |
| Unrealized Gain on Trading Investments | 86,000 | |
| Unrealized Gain on Available-for-Sale Bonds Before Tax | 45.600 | |
| Gam due to Flood Damage 8efore Tax | 109,000 |
Bluebird Products, Inc.
Trial Balance (Partial)
For the Year Ended December 31
| Account | Debit | Credit |
| Cost of Goods Sold | $750,000 | |
| Selling Expenses | 20,000 | |
| Office Supplies Expense | 123,500 | |
| Amorti7ation Expense | 34,500 | |
| Sales Salaries Expense | 55,000 | |
| Advertising Expense | 68,900 | |
| Office Salaries Expense | 78,500 | |
| 68,000 | ||
| Accounting and Legal Fees | 10.425 | |
| Systems Consulting Fees | 44,550 | |
| Interest Expense | 23,750 | |
| Loss on Asset Impairment | 12.350 | |
| Loss on Sale of Discontinued Operations Before Tax | 90,000 |
Bluebird issued $345,000 of no-par common stock on June 30 of the current year The company is subject to a 40% income tax rate. The beginning balance in common stock was $1,456,000. Prepare a statement of stockholders' equity for the year ended December 31. Note: You will need to solve for net income using the given information.
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Selected current year-end financial statements of Genesis Corporation follow. All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $48,900; total assets, $189,400; common stock, $90,000; and retained earnings, $33,748. Compute the following: total asset turnover, return on total assets, and return on equity. Round to one decimal place.
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $49,900; total assets, $249,400; common stock, $89,000; and retained earnings, $31,607.)
CABOT CORPORATION
Balance Sheet
December 31 of current year
Assets Liabilities and Equity
Cash $ 10,000 Accounts payable $ 16,500
Short-term investments 9,400 Accrued wages payable 3,600
Accounts receivable, net 30,000 Income taxes payable 3,400
Merchandise inventory 40,150 Long-term note payable, secured by mortgage on plant assets 70,400
Prepaid expenses 2,500 Common stock 89,000
Plant assets, net 153,300 Retained earnings 62,450
Total assets $ 245,350 Total liabilities and equity $ 245,350
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales $ 452,600
Cost of goods sold 298,050
Gross profit 154,550
Operating expenses 98,800
Interest expense 4,100
Income before taxes 51,650
Income tax…
Selected current year-end financial statements of Cabot Corporation follow. (All sales were on credit; selected balance sheet amounts at December 31 of the prior year were inventory, $51,900; total assets, $219,400; common stock, $81,000; and retained earnings, $34,953.)
CABOT CORPORATION
Balance Sheet
December 31 of current year
Assets
Liabilities and Equity
Cash
$ 12,000
Accounts payable
$ 16,500
Short-term investments
9,000
Accrued wages payable
3,800
Accounts receivable, net
33,200
Income taxes payable
4,700
Merchandise inventory
36,150
Long-term note payable, secured by mortgage on plant assets
71,400
Prepaid expenses
2,800
Common stock
81,000
Plant assets, net
151,300
Retained earnings
67,050
Total assets
$ 244,450
Total liabilities and equity
$ 244,450
CABOT CORPORATION
Income Statement
For Current Year Ended December 31
Sales
$ 455,600
Cost of goods sold
298,050
Gross profit
157,550
Operating expenses
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Interest expense…
Chapter 5 Solutions
Intermediate Accounting (2nd Edition)
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