Solutions to in-class HW Week 6 - EXERCISE52(1520minutes 1 2 3 4 5 6 7 8 9 10 h d f f c a f g a a 11 12 13 14 15 16 17 18 19 20 b f a h c b a a g f 10

Solutions to in-class HW Week 6 - EXERCISE52(1520minutes 1...

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EXERCISE 5-2 (15–20 minutes)  1.h.11.b.  2.d.12.f.  3.f.13.a.  4.f.14.h.  5c.15.c.  6.a.16.b.  7.f.17.a.  8.g.18.a.  9.a.19.g.10.a.20.f.EXERCISE 5-3 (15–20 minutes)  1.a.10.f.  2.b.11.a.  3.f.12.f.  4.a.13.a. or e. (preferably a.)  5f.14.c. and N.  6.h.15.f.  7.i.16.X.  8.d.17.f.  9.a.18.c.EXERCISE 5-4 (30–35 minutes)Denis Savard Inc.Balance SheetDecember 31, 20–AssetsCurrent assets1
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      Cash..............................................................$XXX                       Less: Cash restricted for plant                 expansion.............................................  XXX$XXX      Accounts receivable.......................................XXX                        Less:  Allowance  for doubtful                 accounts...............................................  XXXXXX      Notes receivable............................................XXX      Receivables—officers....................................XXX      Inventories            Finished goods........................................XXX            Work in process.......................................XXX            Raw materials..........................................  XXX  XXX                  Total current assets...........................$XXXLong-term investments      Preferred stock investments..........................XXX      Land held for future plant site........................XXX      Restricted cash (plant expansion)..................  XXX                  Total long-term investments...............XXX Property, plant, and equipment      Buildings........................................................XXX                        Less:   Accum.   depreciation—               buildings................................................  XXXXXXIntangible assets      Copyrights......................................................  XXX             Total assets............................................$XXXLiabilities and Stockholders’ EquityCurrent liabilities      Salaries and wages payable.................................$XXX      Notes payable, short-term....................................XXX      Unearned subscriptions revenue..........................XXX      Unearned rent revenue.........................................  XXX            Total current liabilities.....................................$XXX2
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Long-term debt      Bonds payable, due in four years.........................$XXX      Less: Discount on bonds payable......................... (XXX)  XXX            Total liabilities.................................................XXXStockholders’ equity      Capital stock:            Common stock................................................XXX      Additional paid-in capital:                       Paid-in capital in excess of par                (common stock)............................................  XXX                  Total paid-in capital...................................XXX      Retained earnings.................................................  XXX                                   Total paid-in capital and                       retained earnings...................................XXX            Less:  Treasury stock, at cost......................... (XXX)      Equity attributable to Denis Savard, Inc................  XXX      Equity attributed to noncontrolling interest............  XXX                  Total stockholders’ equity.........................XXX                                    Total   liabilities   and                       stockholders’ equity...............................$XXXNote: An assumption made here is that cash included the restricted cashfor plant expansion. If it did not, then a subtraction from cash would notbe necessary or the cash balance would be “grossed up” and then therestricted cash for plant expansion deducted.EXERCISE 5-7 (15–20 minutes)Current assets      Cash.......................................................................$  87,000*      Less: Restricted cash (plant expansion)................    50,000$  37,000            Trading   securities   at   fair   value   (cost,           $31,000)..............................................................29,000           Accounts receivable (of which $50,000 is           pledged as collateral on a bank loan).................161,000      Less: Allowance for doubtful accounts...................    12,000149,0003
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