Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 6, Problem 6.5E
Prepare
| Account | Debit | Credit |
| Cash | $ 645,235 | |
| Notes payable, due in 5 years | $ 190,900 | |
| 857,735 | ||
| Obligations under capital leases (noncurrent) | 575,000 | |
| Obligations under pension plans | 301,250 | |
| 35,500 | ||
| Accumulated other comprehensive loss | 356,700 | |
| Current portion of long-term debt | 356,800 | |
| Property, plant, and equipment - net | 2,745,600 | |
| Investments in affiliate companies (noncurrent) | 567,500 | |
| 450,000 | ||
| Bonds payable, due in 10 years | 1,890,750 | |
| Investments at fair value (trading) | 235,000 | |
| Accounts payable | 500,000 | |
| Additional paid-in capital | 710,300 | |
| Dividends payable | 55,000 | |
| Equipment under capital lease | 1,511,750 | |
| Intangible assets – net | 205,700 | |
| Merchandise inventory | 665.750 | |
| Income taxes payable | 40,000 | |
| Common stock, $1 par value | 1,870,000 | |
| Totals | $7,383,235 | $7,383,235 |
Required
- a. Prepare the current-year classified balance sheet using the report format.
- b. Prepare the current-year classified balance sheet using the account format.
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Students have asked these similar questions
Mackenzie Corp. is preparing the December 31, 2023, year-end financial statements. Following are selected unadjusted account
balances:
Estimated warranty liability
Income tax expense
Mortgage payable, 6%
$ 6,590
133,100
480,000
120-day note payable, 5%
Unearned revenues
Warranty expense
$ 93,000
309,000
7,700
Additional information:
a. $12,100 of income tax was accrued monthly from January through to November inclusive and paid on the 15th day of the following
month. The actual amount of tax expense for the year is determined to be $139,040.
b. A customer is suing the company. Legal advisers believe it is probable that the company will have to pay damages, the amount of
which will approximate $153,000 given similar cases in the industry.
c. During December, Mackenzie had sales of $723,000. 6% of sales typically require warranty work equal to 15% of the sales amount.
d. Mortgage payments are made on the first day of each month.
e. $112,800 of the Unearned Revenues remain unearned at…
Retirement of Debt
M Company is preparing its statement of cash flows for the current year. During the year, the company retired two issuances of debt and properly recorded the transactions. These transactions were as follows:
Paid cash of $16,400 to retire bonds payable with a face value of $18,000 and a book value of $16,800.
Paid cash of $46,000 to retire bonds payable with a face value of $43,000 and a book value of $45,000.
Required:
Record, in journal entry form, the entries that M would make for the preceding transactions on its spreadsheet to prepare its statement of cash flows. If an amount box does not require an entry, leave it blank.
DESCRIPTION
DOC. NO.
POST. REF.
DEBIT
CREDIT
(1)
fill in the blank 2
fill in the blank 3
fill in the blank 5
fill in the blank 6
Cash Flows from Financing Activities:
fill in the blank 8
fill in the blank 9
Net Cash Flow from Operating Activities:…
Category.
Prior Year Current Year
Accounts payable
???
???
Accounts receivable
320,715
397,400
Accruals
40,500
33,750
Additional paid in capital
500,000
541,650
Cash
17,500
47,500
Common Stock
94,000
105,000
COGS
328,500
429,735.00
Current portion long-term debt
33,750
35,000
Depreciation expense
54,000
55,152.00
Interest expense
40,500
42,662.00
Inventories
279,000
288,000
Long-term debt
339,349.00 400,985.00
Net fixed assets
946,535
999,000
Notes payable
148,500
162,000
Operating expenses (excl. depr.) 126,000
161,641.00
Retained earnings
306,000
342,000
Sales
639,000
848,846.00
Тахes
24,750
47,931.00
Chapter 6 Solutions
Intermediate Accounting
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