Ch5 Solutions

Ch5 Solutions - SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 5-1 Current assets Cash. .................................................................. $ 30,000 Accounts receivable. ........................................ $110,000 Less: Allowance for doubtful accounts. .. (8,000 ) 102,000 Inventories. ........................................................ 290,000 Prepaid insurance. ........................................... 9,500 Total current assets. ............................ $431,500 BRIEF EXERCISE 5-2 Current assets Cash. .................................................................. $ 7,000 Trading securities. ............................................ 11,000 Accounts receivable. ........................................ $90,000 Less: Allowance for doubtful accounts. .. (4,000 ) 86,000 Inventory. ........................................................... 30,000 Prepaid insurance. ........................................... 5,200 Total current assets. ............................ $139,200 BRIEF EXERCISE 5-3 Long-term investments Held-to-maturity securities. ............................. $ 56,000 Land held for investment. ................................ 39,000 Long-term note receivables. ........................... 42,000 Total investments. ...................................... $137,000
Background image of page 1

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

View Full DocumentRight Arrow Icon
BRIEF EXERCISE 5-4 Property, plant, and equipment Land. .................................................................. $ 71,000 Buildings. .......................................................... $207,000 Less: Accumulated depreciation. ............. (45,000 ) 162,000 Equipment. ........................................................ $190,000 Less: Accumulated depreciation. ............ (19,000 ) 171,000 Timberland. ....................................................... 70,000 Total property, plant, and equipment. .. $474,000 BRIEF EXERCISE 5-5 Intangible assets Goodwill. ............................................................ $150,000 Patents. .............................................................. 220,000 Franchises. ........................................................ 130,000 Total intangibles. ........................................ $500,000 BRIEF EXERCISE 5-6 Intangible assets Goodwill. ............................................................ $ 50,000 Franchises. ........................................................ 47,000 Patents. .............................................................. 33,000 Trademarks. ...................................................... 10,000 Total intangible assets. .............................. $140,000
Background image of page 2
BRIEF EXERCISE 5-7 Current liabilities Notes payable. .................................................. $ 22,500 Accounts payable. ............................................ 72,000 Accrued salaries. .............................................. 4,000 Income taxes payable. ..................................... 7,000 Total current liabilities. ........................ $105,500
Background image of page 3

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

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 13

Ch5 Solutions - SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE...

This preview shows document pages 1 - 4. Sign up to view the full document.

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