SticeSolution_2008Spg Hung

SticeSolution_2008Spg Hung - Financial Accounting; Stice &...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial Accounting; Stice & Stice EXERCISES E 4-1 Classification of Balance Sheet Accounts 1. c 6. i 11. h 16. h 2. d 7. g 12. c 17. a or b 3. f 8. b 13. f 18. b or e 4. a 9. c 14. a 19. h 5. a 10. a 15. i 20. i E 4-8 Preparation of a Balance Sheet Hart Corporation Balance Sheet December 31, 2006 Assets Current assets Cash $ 42,000 Investment in securities 30,000 Accounts receivable 55,000 Inventory 88,000 Total current assets $215,000 Long-term investments 10,000 Property, plant, and equipment Land $100,000 Building $200,000 Less: Accum. depr.—Building (27,000 ) 173,000 Equipment $ 64,000 Less: Accum. depr.—Equipment (10,000 ) 54,000 Total property, plant, and equipment 327,000 Intangible assets Patent 18,000 Other assets Long-term receivable* 16,000 Total assets $586,000 *The long-term receivable could also be classified as a long-term investment. Liabilities and Stockholders’ Equity Liabilities Current liabilities Accounts payable $ 66,000 Current portion of long-term debt 72,000 Total current liabilities $ 138,000 Long-term debt 100,000 Total liabilities $ 238,000 Stockholders’ equity Common stock, par value $ 40,000 Additional paid-in capital 200,000
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Financial Accounting; Stice & Stice Retained earnings 108,000 1 Total stockholders’ equity 348,000 Total liabilities and stockholders’ equity $ 586,000 1 Needed to balance the financial statement E 4-10 Asset Definition 1. No asset. No probable future economic benefits are associated with the mine. 2. No asset. The oil field has future economic benefit, but it is not yet controlled by DeBroglie as a result of a past transaction. 3. No asset. There certainly are future economic benefits associated with the geologists, but they are not controlled by DeBroglie, since they always have the option of quitting. 4. No asset. The real estate is not currently controlled by DeBroglie. 5. No asset. The probability of future economic benefit from the crater is low. E 4-11 Liability Definition 1. No liability. There was a liability, but since the payment was made, no further future sacrifice of assets will be required. 2. Liability. Pauli is obligated to deliver services in the future as a result of events (receipt of the advertising) that have already occurred. 3. Liability. It is probable that Pauli will have to sacrifice assets in the future (new carpets) as a result of events that have already occurred (past sales of guaranteed carpets). 4. No liability. Although it is probable that Pauli will have to make payments in the future, the events necessitating those payments have not yet occurred. 5. No liability. Same as (4). E 4-12 Transaction Analysis 1. Bank Total Prepaid Total Acc. Loan Mortgage Stkhlders’ Liab. Cash
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/23/2008 for the course ACCT 410x taught by Professor Bonner during the Spring '06 term at USC.

Page1 / 16

SticeSolution_2008Spg Hung - Financial Accounting; Stice &...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online