solutions%20ch05%20part%201 - AIM 3331-0U1 Solutions to...

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AIM 3331-0U1 Solutions to suggested assignments Chapter 5 Part 1 EXERCISE 5-8 (10–15 minutes) 1. Dividends payable of $2,375,000 will be reported as a current liability [(1,000,000 – 50,000) X $2.50]. 2. Bonds payable of $25,000,000 and interest payable of $3,000,000 ($100,000,000 X 12% X 3/12) will be reported as a current liability. Bonds payable of $75,000,000 will be reported as a long-term liability. 3. Customer advances of $17,000,000 will be reported as a current liability ($12,000,000 + $30,000,000 – $25,000,000). EXERCISE 5-11 (25–30 minutes) Kelly Corporation Balance Sheet December 31, 2007 Assets Current assets Cash. ............................................................................... $ 6,850 Office supplies. .............................................................. 1,200 Prepaid insurance. .......................................................... 1,000 Total current assets. ................................................. $ 9,050 Equipment. ........................................................................... 48,000 Less: Accumulated depreciation. ......................................... 4,000 44,000 Intangible assets—trademark. .............................................. 950 Total assets. ............................................................. $54,000
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This note was uploaded on 08/06/2009 for the course BUSINESS 4444 taught by Professor Dr.dale during the Spring '09 term at University of Texas at Dallas, Richardson.

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solutions%20ch05%20part%201 - AIM 3331-0U1 Solutions to...

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