ACT3391FALL2010TraditionalHomeworkChs1to3 - HOMEWORK FALL...

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FALL 2010 ACT3391 ALL homework assignments must be completed by using some type of computer software program, e.g., word. NO CREDIT WILL BE GIVEN FOR LATE HOMEWORK. When completing your homework assignments DO NOT use abbreviations, e.g., spell out Governmental Accounting Standards Board instead of simply writing GASB. As discussed during class, you can work on these homework assignments in groups or as an individual. 1. (0.5 point) Identify the name of the accounting pronouncements that each of the following standard-setting bodies issued. DO NOT ABBREVIATE!! a. Committee on Accounting Procedure b. Accounting Principles Board c. Financial Accounting Standards Board 2. (8 points) Pederson Company’s balance sheet as of 12-31-09 is presented below: 12-31-09 Current assets Cash $ 600,000 Accounts receivable $ 350,000 Prepaid insurance $ 175,000 Non-current assets Property, plant, and equipment – at cost $ 600,000 Accumulated depreciation $ 125,000 TOTAL ASSETS $1,600,000 Current liabilities Accounts payable $ 200,000 Accrued property taxes payable $ 300,000 Non-current liabilities Long-term debt $ 700,000 Stockholders’ equity Common stock and additional paid-in-capital $ 140,000 Retained earnings $ 260,000 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $1,600,000 During the year ended 12-31-10, Pederson entered into the following events/transactions: a) Issued 2,000 shares of its common stock at $20 per share. Assume there were NO stock issuance costs. b) Repaid $200,000 of its long-term debt. c) Used up $150,000 of its prepaid insurance. d) Purchased $100,000 of office furniture (property, plant, and equipment) on a cash basis. e)
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ACT3391FALL2010TraditionalHomeworkChs1to3 - HOMEWORK FALL...

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