Chapter 05 - Balance Sheet Solution

Chapter 05 - Balance Sheet Solution - 80,000 Total assets...

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Chapter # 5 In-Class Exercises Page 3 of 4 Chapter 05 - In-Class Exercises.doc - 11/30/04) Solutions Ajax Company Balance Sheet December 31, 2006 Assets Current assets Cash 230,000 $ Marketable securities--at fair value 120,000 Accounts receivable 350,000 $ Less allowance for doubtful accounts 10,000 340,000 $ Inventories, at lower of average cost or market 385,000 Prepaid expenses 5,000 Total current assets 1,080,000 $ Investments Land helf for future use 175,000 Long-term investment in bonds 90,000 265,000 Property, plant, and equipment Building 710,000 $ Less accum. depr.--building 140,000 570,000 $ Office equipment 255,000 less accum. Depr.--office equipment 95,000 160,000 730,000 $ Intangible assets Goodwill
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Unformatted text preview: 80,000 Total assets 2,155,000 $ Liabilities and Stockholders' Equity Current liabilities Accounts payable 105,000 $ Bank overdraft 30,000 Notes payable (due next year) 125,000 Rent payable 55,000 Total current liabilities 315,000 $ Long-term liabilities Bonds payable 500,000 $ Contingent liability 53,000 Pension obligation 82,000 635,000 $ Total liabilities 950,000 $ 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 755,000 Total stockholders' equity 1,205,000 Total liabilities and stockholders' equity 2,155,000 $...
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