Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 6, Problem 6.5P
Prepare Stockholders’ Equity Section of
| Account | Debit | Credit |
| Loss on disposal of plant assets | $ 740 | |
| Dividends | 790 | |
| Cost of goods sold | 548,450 | |
| Selling expenses | 70,515 | |
| Dividend income | $ 65 | |
| Advertising expense | 39,175 | |
| Office salaries expense | 6,268 | |
| Depreciation expense | 94,020 | |
| loss on asset impairment | 3,250 | |
| Accounting and legal fees | 15,600 | |
| Interest income | 712 | |
| Unrealized loss on available-for-sale bonds before tax | 450 | |
| interest expense | 9,600 | |
| Sales | 783,500 | |
| 368,900 | ||
| Accumulated other comprehensive loss: beginning balance | 5,700 | |
| Common stock - no par: beginning balance | 85,800 |
Society Teas issued $5,400 of no-par common stock on April 1 of the current year.
Required
Prepare the stockholders’ equity section of the balance sheet at December 31 of the current year ignore taxes.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Ritter Corporation's accountants prepared the following financial statements for year-end.
RITTER CORPORATION
Income Statement
Revenue
Expenses
Depreciation.
EBT
Taxes
Net income
Dividends
2823
Assets
Cash
Other current assets
Net fixed assets
Total assets
$ 1,050
720
78
$268
104
$ 156
$ 21
RITTER CORPORATION
Balance Sheets
December 31
Liabilities and Equity
Accounts payable
Long-term debt
Stockholders' equity
Total liabilities and equity
a. Change in cash
b. Change in net working capital
c. Cash flow from assets
2022
$69
217
675
$ 961
$ 269
8
692
$ 961
2023
$90
270
820
$ 1,180
$ 283
78
827
$ 1,180
a. What is the change in cash during the year 2023.
Note: Do not round Intermediate calculations.
b. Determine the change in net working capital in 2023.
Note: Do not round Intermediate calculations.
c. Determine the cash flow generated by the firm's assets during the year 2023.
Note: A negative answer should be Indicated by a minus sign. Do not round Intermediate calculations.
Given the following account information for Leong Corporation, prepare a statement of financial position in report form for the company as of December 31, 2012. All accounts have normal balances.
Equipment ¥ 40,000
Interest Expense 2,400
Interest Payable 600
Retained Earnings ?
Dividends 50,400
Land 137,320
Inventory 102,000
Bonds Payable 78,000
Notes Payable (due in 6 months) 14,400
Share capital–ordinary 60,000
Accumulated Depreciation - Eq. 10,000
Prepaid Advertising 5,000
Revenue…
Following is the balance sheet of Thornton Company for Year 3:
THORNTON COMPANY
Balance sheet
Assets
Cash
$ 15,050
Marketabhe securities
Accounts receivable
Inventory
Property and equipment
Accumulated depreciation
8,380
13,340
11,050
165,500
(12,300)
Total assets
$201,020
Liabilities and Stockholders' Equity
Accounts payable
Current notes payable
Mortgage payable
Bonds payable
Common stock
Retained earnings
8,750
3,200
4,100
21,840
113,300
49,830
Total liabilities and stockholders' equity
$201,020
The average number of common stock shares outstanding during Year 3 was 900 shares. Net income for the year was $15,300.
Required
Compute each of the following: (Round your answer to 2 decimal places. For percentages, O.2345 should be entered as 23.45.)
a. Current ratio
b. Earnings per share
per share
c. Quick (acid-test) ratio
d. Return on investment
e. Return on equity
f. Debt to equity ratio
Chapter 6 Solutions
Intermediate Accounting
Ch. 6 - What are the limitations of the balance sheet?Ch. 6 - What does a firms liquidity measure?Ch. 6 - Prob. 6.3QCh. 6 - What are the four major components of stockholders...Ch. 6 - Prob. 6.5QCh. 6 - Prob. 6.6QCh. 6 - Where is accumulated other comprehensive income...Ch. 6 - Prob. 6.8QCh. 6 - Prob. 6.9QCh. 6 - What are the two main balance sheet formats?...
Ch. 6 - Prob. 6.11QCh. 6 - Prob. 6.12QCh. 6 - What are the two formatting options for reporting...Ch. 6 - What is financial statement articulation?Ch. 6 - How is net income closed? Is the closing entry the...Ch. 6 - Why are the notes to the financial statements an...Ch. 6 - Prob. 6.17QCh. 6 - What is a subsequent event?Ch. 6 - What is a subsequent event under IFRS?Ch. 6 - How do firms report a material subsequent event on...Ch. 6 - Prob. 6.21QCh. 6 - Over what period must management assess the...Ch. 6 - Prob. 6.23QCh. 6 - Prob. 6.24QCh. 6 - Prob. 6.25QCh. 6 - Prob. 6.26QCh. 6 - Prob. 6.27QCh. 6 - Prob. 6.28QCh. 6 - Prob. 6.29QCh. 6 - Prob. 6.30QCh. 6 - Prob. 6.31QCh. 6 - Who is responsible for designing and implementing...Ch. 6 - Prob. 6.33QCh. 6 - What are the two key measures of liquidity?...Ch. 6 - What does the debt-to-equity ratio measure for a...Ch. 6 - What does a high current ratio indicate about a...Ch. 6 - Is it useful to compare working capital among...Ch. 6 - Sykes Corporations comparative balance sheets at...Ch. 6 - During Year 1, Brianna Company had the following...Ch. 6 - Which of the following items would not be included...Ch. 6 - Kong Co. purchased a three-month U.S. Treasury...Ch. 6 - Prob. 6.5MCCh. 6 - Prob. 6.6MCCh. 6 - In its year-end income statement, Black Knights...Ch. 6 - On is current year income statement, Vegas...Ch. 6 - Advantages of the Statement of Financial Position....Ch. 6 - Prob. 6.2BECh. 6 - Prob. 6.3BECh. 6 - Account Classification: Current and Noncurrent...Ch. 6 - Classified Balance Sheet. Armstrong Associates...Ch. 6 - Classified Balance Sheet, Report Format. Martell...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classified Balance Sheet. Report Format.Bowe...Ch. 6 - Classified Balance Sheet, Account Format. Using...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Prob. 6.11BECh. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating. Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Classification as Operating, Investing, or...Ch. 6 - Prob. 6.18BECh. 6 - Statement of Cash Flows, Indirect Method. Identity...Ch. 6 - Financial Statement Articulation. Complete the...Ch. 6 - Prob. 6.21BECh. 6 - Prob. 6.22BECh. 6 - Prob. 6.23BECh. 6 - Prob. 6.24BECh. 6 - Statement of Cash Flows, Indirect Method. Tennis...Ch. 6 - Statement of Cash Flows, Direct Method. Use the...Ch. 6 - Prob. 6.27BECh. 6 - Ratio Analyses. Green Grasshopper Incorporated is...Ch. 6 - Classification of Assets and Liabilities. Darin...Ch. 6 - Prob. 6.2ECh. 6 - Prob. 6.3ECh. 6 - Prob. 6.4ECh. 6 - Prepare Balance Sheet. Blackburn Building Products...Ch. 6 - Prepare Balance Sheet. Lake Company provided the...Ch. 6 - Statement of Cash Flows, Indirect Method. Tulsa...Ch. 6 - Prob. 6.8ECh. 6 - Prob. 6.9ECh. 6 - Prob. 6.10ECh. 6 - Prob. 6.11ECh. 6 - Financial Statement Articulation. Use the...Ch. 6 - Prob. 6.13ECh. 6 - Prob. 6.14ECh. 6 - Prob. 6.15ECh. 6 - Prob. 6.16ECh. 6 - Prob. 6.17ECh. 6 - Prob. 6.18ECh. 6 - Prepare Balance Sheet. Larkin Corporation provided...Ch. 6 - Prob. 6.2PCh. 6 - Prepare Balance Sheet. Jennings Incorporated...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Stockholders Equity Section of Balance...Ch. 6 - Prepare Classified Balance Sheet.Centre Company...Ch. 6 - Prepare a classified balance sheet at December 31...Ch. 6 - Prob. 6.8PCh. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Statement of Cash Flows, Indirect Method. Prepare...Ch. 6 - Prob. 6.13PCh. 6 - Statement of Cash Flows, Operating Activities...Ch. 6 - Statement of Cash Flows, Direct Method. Prepare...Ch. 6 - Prob. 6.16PCh. 6 - Prob. 1JCCh. 6 - Prob. 1FSCCh. 6 - Prob. 1SSCCh. 6 - Surfing the Standards Case 2: True and Fair...Ch. 6 - Basis for Conclusions Cases Basis for Conclusions...Ch. 6 - Prob. 2BCC
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
- Juroe Company provided the following income statement for last year: Juroes balance sheet as of December 31 last year showed total liabilities of 10,250,000, total equity of 6,150,000, and total assets of 16,400,000. Required: Note: Round answers to two decimal places. 1. Calculate the times-interest-earned ratio. 2. Calculate the debt ratio. 3. Calculate the debt-to-equity ratio.arrow_forwardPreparing the Operating Activities Section The data below were provided by the accounting records of Franklin Company. Net income (accrual basis) $104,000 Depreciation expense 20,800 Decrease in salaries payable 3,120 Decrease in trade accounts receivable 4,680 Increase in merchandise inventory 6,500 Amortization of patent 260 Increase in long-term liabilities 26,000 Sale of capital stock for cash 65,000 Amortization of premium on bonds payable 520 Accounts payable increase 10,400 Stock dividend issued 26,000 Required Prepare the reconciliation of net income with cash flow from operations for inclusion in the statement of cash flows (indirect method). Note: If an item is not included in the operating activities section, leave the answer blank (zero). Cash flows from Operating Activities Net income Answer Adjustments: Depreciation expense Answer Amortization expense—patent Answer Amortization of premium on bonds payable…arrow_forwardThe following information pertains to Diana Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Line Item Description Amount Cash and short-term investments $36,084 Accounts receivable (net) 26,488 Inventory 39,031 Property, plant, and equipment 284,840 Total Assets $386,443 Liabilities and Stockholders’ Equity Line Item Description Amount Current liabilities $64,429 Long-term liabilities 91,237 Common stock 175,317 Retained earnings 55,460 Total liabilities and stockholders' equity $386,443 Income Statement Line Item Description Amount Sales $88,296 Cost of goods sold 35,318 Gross margin $52,978 Operating expenses (20,439) Interest expense (4,415) Net income $28,124 Line Item Description Amount Number of shares of common stock outstanding 5,546 Market price of common stock $29 Total dividends paid $9,000 Cash provided by operations…arrow_forward
- The following is a partial trial balance for the Green Star Corporation as of December 31, 2021: Account Title Sales revenue Debits Credits 2,050,000 48,000 68,000 Interest revenue Gain on sale of investments Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 870,000 250, 000 93,000 58,000 148,000 There were 150,000 shares of common stock outstanding throughout 2021. Required: 1. Prepare a single-step income statement for 2021, including EPS disclosures. 2. Prepare a multiple-step income statement for 2021, including EPS disclosures. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare a multiple-step Income statement for 2021, including EPS disclosures. (Amounts to be deducted should be Indicated with a minus sign. Round EPS answer to 2 decimal places.) GREEN STAR CORPORATION Income Statement For the Year Ended December 31, 2021arrow_forwardThe trial balanGe of Lakewood Inc. included the following accounts as of December 31, 2021 Debits Credits 1, 700, 000 78,000 48, 000 Sales revenue Interest revenue Gain on sale of investments Cest of geods sold Selling expense Loss on inventory write-down Interest expense General and administrative expense 1, 020, 000 210,000 28,000 38,000 148,000 Lakewood Inc, had 100,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The Required Prepare a single-step income statement with eamiags per share disclostre. (Round Earnings per shate answer to2 decimal places:) LAKEWOOD ING Income Statement For the Year Ended December $1 2021 Revendes andgainsarrow_forwardComparative financial statements for Weaver Company follow: Weaver CompanyComparative Balance Sheetat December 31 This Year Last Year Assets Cash $ 15 $ 11 Accounts receivable 291 229 Inventory 152 194 Prepaid expenses 9 5 Total current assets 467 439 Property, plant, and equipment 503 425 Less accumulated depreciation (81) (71) Net property, plant, and equipment 422 354 Long-term investments 29 35 Total assets $ 918 $ 828 Liabilities and Stockholders' Equity Accounts payable $ 302 $ 224 Accrued liabilities 71 78 Income taxes payable 72 63 Total current liabilities 445 365 Bonds payable 199 170 Total liabilities 644 535 Common stock 160 201 Retained earnings 114 92 Total stockholders’ equity 274 293 Total liabilities and stockholders' equity $ 918 $ 828 Weaver CompanyIncome StatementFor This Year Ended December 31 Sales $ 750 Cost of goods sold 446 Gross margin 304 Selling and administrative expenses…arrow_forward
- Smith Products, Inc. provided the following information from its current-year trial balance. Smith Products, Inc. Trial Balance (Partial) For the Year Ended December 31 Account Debit Credit Common Stock (no par)—Beginning Balance $84,000 Retained Earnings—Beginning Balance 800,000 Accumulated Other Comprehensive Income—Beginning Balance 185,000 Dividends $140 Sales 600,000 Dividend Income 1,000 Interest Income 4,400 Gain on Disposal of Plant Assets 1,050 Unrealized Gain on Trading Securities 325 Cost of Goods Sold 42,500 Selling Expenses 4,400 Advertising Expense 6,800 Office Salaries Expense 6,800 Sales Salaries Expense 2,200 Office Supplies Expense 1,900 Accounting and Legal Fees—Administrative 250 Systems Consulting Fees—Administrative 360 Amortization Expense—Administrative 5,300…arrow_forwardComparative financial statements for Weaver Company follow: Weaver Company Comparative Balance Sheet at December 31 This Year Last Year Assets Cash $ -28 $ 13 Accounts receivable 337 229 Inventory 153 195 Prepaid expenses 8 5 Total current assets 470 442 Property, plant, and equipment 506 426 Less accumulated depreciation 82 70 Net property, plant, and equipment 424 356 Long-term investments 29 35 Total assets $ 923 $ 833 Liabilities and Stockholders' Equity Accounts payable $ 300 $ 225 Accrued liabilities 72 79 Income taxes payable 72 63 Total current liabilities 444 367 Bonds payable 196 172 Total liabilities 640 539 Common stock 165 202 Retained earnings 118 92 Total stockholders’ equity 283 294 Total liabilities and stockholders' equity $ 923 $ 833 Weaver Company Income Statement For This Year Ended December 31 Sales $ 753 Cost of goods sold 447 Gross margin 306 Selling and administrative expenses 222 Net operating income 84 Nonoperating items: Gain on sale of investments $ 6 Loss…arrow_forwardThe following information pertains to Diane Company. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit. Assets Cash and short-term investments $39,930 Accounts receivable (net) 26,035 Inventory 25,780 Property, plant, and equipment 296,952 Total Assets $388,697 Liabilities and Stockholders' Equity Current liabilities $60,554 Long-term liabilities 98,485 Common stock 162,488 Retained earnings 67,170 Total liabilities and stockholders' equity $388,697 Income Statement Sales $89,668 Cost of goods sold 35,867 Gross margin $53,801 Operating expenses (29,364) Interest expense (4,483) Net income $19,954 Number of shares of common stock outstanding 6,717 Market price of common stock $29 Total dividends paid $9,000 Cash provided by operations $30,000 What is the return on total assets for Diane Company? a.6.3% b.1.4% c.3.4% d.9.8%arrow_forward
- (The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. Current 2 Ago At December 31 Assets Cash Accounts receivable , not Merchandise inventory Prepaid expenses plant assets , net Total assets Liabilities and Equity Accounts payable Long-term notes payable secured by mortgages on plant assets Common stock , $10 par value Retained earnings Total liabilities and equity $ 29,353 81, 770 101,772 260,853 $483.017 $ 33,312 $ 34, 57 , 47,192 76,263 50,269 3,894 240, 188 214, 793 $ 416,394 $ 350, 500 $121,474$ 0, 3 45,341 89, 899 162,500 (109, 144)/(5483, 017) 94.813 75,137 162,500 162,500 88.210 $ 416,394 $ 350,500arrow_forwardThe following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 2,350,000 Interest revenue 80,000 Loss on sale of investments 22,500 Cost of goods sold 1,200,300 Loss on inventory write-down (obsolescence) 200,000 Selling expense…arrow_forwardThe following is a partial trial balance for General Lighting Corporation as of December 31, 2021: Account Title Debits Credits Sales revenue 2,350,000 Interest revenue 80,000 Loss on sale of investments 22,500 Cost of goods sold 1,200,300 Loss on inventory write-down (obsolescence) 200,000 Selling expense…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License