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 6.6E
Prepare
| Account | Debit | Credit |
| Goods payable, due in 10 years | $ 200,975 | |
| Investments at fair value (current) | $ 25,000 | |
| Accounts payable | 135,000 | |
| Additional paid-in-capital | 400,000 | |
| Dividends payable | 3,700 | |
| Equipment under capital lease | 856,800 | |
| Intangible assets-net | 207,000 | |
| Merchandise inventory | 667500 | |
| Income taxes payable | 32,575 | |
| Cash | 12,750 | |
| Accumulated other comprehensive income | 70,000 | |
| Current portion of long-term debt | 100,000 | |
| Property, plant, and equipment - net | 1,098,000 | |
| Investments in affiliate compares | 43,000 | |
| (noncurrent) | ||
| 60,000 | ||
| Notes payable, due in 5years | 300,000 | |
| 701,735 | ||
| Obligations under capital teases | 210,500 | |
| Obligations under pension plans | 185,400 | |
| 16,000 | ||
| Common stock, $1 par value | 664,715 | |
| Totals | $2,970,050 | $2,970,050 |
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
ABC Company, as of December 31, 2021 provided the following balances:
Cash, net of a P7,000 overdraft
80,000
Receivable, net of customer credit balances totaling P6,000
30,000
Inventory (P20,000 of which are held on consignment
60,000
Prepayments
10,000
Property, plant and equipment, net of accumulated depreciation
of P15,000
90,000
Accounts payable net of debit balances in suppliers' accounts
of P3,000
45,000
Notes payable – bank, due on July 2022
25,000
Income tax payable
15,000
17. Total current assets reported in the December 31, 2021 balance sheet is
a. 176,000
b. 156,000
c. 173,000
d. 170,000
Income Statement
For the Year
Net sales $827,500
COGS 611,800
Depreciation 23,100
EBIT $192,600
Interest 9,700
Taxable income $182,900
Taxes 6,200
Net income 176,700
Balance Sheet
Beginning of Year End of Year
Cash $38,200 $43,700
Accounts receivable 91,400 86,150
Inventory 203,900 214,600
Net fixed assets 516,100 537,950
Total assets 849,600 882,400
Accounts payable $136,100 $104,300
Long-term debt 329,500 298,200
Common stock 75,000 82,000
Retained earnings 309,000 397,900
Total Liab. & Equity $849,600 $882,400
There are 100,000 shares that were trading at $15 per share at the end of the year.
Show the computation of Cash-Flow from Assets by computing Operating Cash-Flow, and Capex, and Working Capital Investment. Show how this Cash-Flow is distributed to Debtholders (or Creditors) and Stockholders. Explain if any new issue of debt or equity has been made or any debt redemption and stock buybacks.
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
428,571.00
Current portion long-term debt
33,750
35,000
Depreciation expense
54,000
54,035.00
Interest expense
40,500
42,155.00
Inventories
279,000
288,000
Long-term debt
339,577.00
401,377.00
Net fixed assets
946,535
999,000
Notes payable
148,500
162,000
Operating expenses (excl. depr.)
126,000
162,171.00
Retained earnings
306,000
342,000
Sales
639,000
849,094.00
Taxes
24,750
47,192.00
What is the current year's entry for long-term debt on a common-sized balance sheet?
(ROUND TO 4 DECIMAL PLACES.)
Chapter 6 Solutions
Intermediate Accounting
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