ch 2 - CHAPTER 2 A Further Look at Financial Statements...

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

View Full Document Right Arrow Icon
CHAPTER 2 A Further Look at Financial Statements SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 2-1 CL Accounts payable CL Income tax payable CA Accounts receivable LTI Investment in long-term bonds PPE Accumulated depreciation PPE Land PPE Building CA Merchandise inventory CA Cash IA Patent IA Goodwill CA Supplies BRIEF EXERCISE 2-4 ICS Issued new shares of common stock DRE Paid a cash dividend IRE Reported net income of $75,000 DRE Reported net loss of $20,000 BRIEF EXERCISE 2-11 (c) SOLUTIONS TO EXERCISES EXERCISE 2-1 CL Accounts payable and CA Inventories accrued liabilities LTI Investments CA Accounts receivable PPE Land PPE Accumulated depreciation LTL Long-term debt PPE Buildings CA Materials and supplies CA Cash and short-term investments PPE Office equipment and furniture CL Dividends payable CA Prepaid expenses IA Goodwill CL Income taxes payable
Background image of page 1

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

View Full DocumentRight Arrow Icon
EXERCISE 2-4 DONOVAN COMPANY Balance Sheet December 31, 2007 Assets Current assets Cash. ...................................................... $16,840 Accounts receivable. ........................... 12,600 Prepaid insurance. ............................... 4,680 Total current assets. .................... $ 34,120 Property, plant, and equipment Land. ...................................................... 61,200 Building. ................................................ $105,800 Less: Accumulated depreciation— building. ................................. 45,600 60,200 Equipment. ............................................ 82,400 Less: Accumulated depreciation— equipment. ............................. 18,720 63,680 185,080 Total assets. .................................. $219,200 Liabilities and Stockholders’ Equity Current liabilities Accounts payable. ............................... $ 9,500
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.

Page1 / 5

ch 2 - CHAPTER 2 A Further Look at Financial Statements...

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