Chapter 5 BS and CF Statement soll - Chapter 05 EXERCISE 5-5 Uhura Company Balance Sheet Assets Current assets Cash Trading securities-at fair value

Chapter 5 BS and CF Statement soll - Chapter 05 EXERCISE...

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Chapter 05 EXERCISE 5-5 Uhura Company Balance Sheet December 31, 2007 Assets Current assets Cash ................................................................... $230,000 Trading securities—at 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 Intangible assets Goodwill ............................................................. 80,000 Total assets ................................................ $2,178,000 1
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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 EXERCISE 5-6 Geronimo Company Balance Sheet July 31, 2007 Assets 2
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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) EXERCISE 5-6 (Continued) Liabilities and Stockholders’ Equity Current liabilities Notes and accounts payable ...................................... $ 52,000**** Taxes payable .............................................................. 6,000 Total current liabilities .......................................... 58,000 3
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Long-term liabilities ........................................................... 75,000 Total liabilities ........................................................ 133,000 Stockholders’ equity .......................................................... 155,500 Total liabilities and stock- holders’ equity .................................................... $288,500 ****($44,000 + $8,000) EXERCISE 5-7 (15–20 minutes) Current assets Cash ................................................................... $ 87,000* Less: Cash restricted for plant expansion ..... (50,000) $ 37,000 Trading securities at fair value (cost, $31,000) ........................................................... 29,000 Accounts receivable (of which $50,000 is pledged as collateral on a bank loan) .......... 161,000 Less: Allowance for doubtful accounts ......... (12,000) 149,000 Less: pledged as collateral on a bank loan (50,000) Net realizable value of receivables 99,000 Interest receivable [($40,000 X 6%) X 8/12] .... 1,600 Inventories at lower of cost (determined using LIFO) or market Finished goods ........................................... 52,000 Work-in-process ......................................... 34,000 Raw materials .............................................. 207,000 293,000 Total current assets .............................. $509,600 4
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