Chapter 5 Solutions - CHAPTER 5 Balance Sheet and Statement...

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Unformatted text preview: CHAPTER 5 Balance Sheet and Statement of Cash Flows EXERCISE 5-5 (3035 minutes) Uhura Company Balance Sheet December 31, 2007 Assets Current assets Cash........................................................ $230,000 Trading securitiesat fair value......... 120,000 Accounts receivable............................. $357,000 Less: Allowance for doubtful accounts....................................... 17,000 340,000 Inventories, at lower of average cost or market.................................... 401,000 Prepaid expenses.................................. 12,000 Total current assets........................ $1,103,000 Long-term investments Land held for future use....................... 175,000 Cash surrender value of life insurance............................................ 90,000 265,000 Property, plant, and equipment Building.................................................. $730,000 Less: Accum. depr.building....... 160,000 570,000 Office equipment................................... 265,000 Less: Accum. depr.office equipment..................................... 105,000 160,000 730,000 5-1 Intangible assets Goodwill................................................. 80,000 Total assets.................................... $2,178,000 5-2 EXERCISE 5-5 (Continued) Liabilities and Stockholders Equity Current liabilities Accounts payable................................. $ 135,000 Notes payable (due next year)............. 125,000 Rent payable.......................................... 49,000 Total current liabilities.................... $309,000 Long-term liabilities Bonds payable....................................... $500,000 Add: Premium on bonds payable........ 53,000 $553,000 Pension obligation................................ 82,000 635,000 Total liabilities................................. 944,000 Stockholders equity Common stock, $1 par, authorized 400,000 shares, issued 290,000 shares.................................................. 290,000 Additional paid-in capital..................... 160,000 450,000 Retained earnings................................. 784,000 * Total stockholders equity............. 1,234,000 Total liabilities and stock- holders equity.............................. $2,178,000 *$2,178,000 $944,000 $450,000 5-3 EXERCISE 5-6 (3035 minutes) Geronimo Company Balance Sheet July 31, 2007 Assets Current assets Cash $60,000* Accounts receivable $46,700** Less: Allowance for doubtful accounts 3,500 43,200 Inventories 65,300 *** Total current assets $168,500 Long-term investments Bond sinking fund 15,000 Property, plant, and equipment Equipment 112,000 Less: Accumulated depreciation equipment................................ 28,000 84,000 Intangible assets Patents 21,000 Total assets $288,500 *($69,000 $15,000 + $6,000) **($52,000 $5,300) ***($60,000 + $5,300) 5-4 EXERCISE 5-6 (Continued) Liabilities and Stockholders Equity Current liabilities Notes and accounts payable.........................Notes and accounts payable....
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Chapter 5 Solutions - CHAPTER 5 Balance Sheet and Statement...

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