Chapter 05 - Homework Solutions

Chapter 05 - Homework Solutions - 5-1CHAPTER 5 Balance...

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Unformatted text preview: 5-1CHAPTER 5 Balance Sheet and Statement of Cash Flows SOLUTIONS TO EXERCISES EXERCISE 5-3 (1520 minutes) 1. a. 10. f. 2. b. 11. a. 3. f. 12. f. 4. a. 13. a. or e. (preferably a.) 5 f. 14. c. and N. 6. h. 15. f. 7. i. 16. X. 8. d. 17. f. 9. a. 18. c. 5-2EXERCISE 5-5 (3035 minutes) Uhura Company Balance Sheet December 31, 2007 AssetsCurrent assetsCash.........................................................$230,000 Trading securitiesat fair value ...........120,000 Accounts receivable............................... $357,000Less: Allowance for doubtful accounts......................................... 17,000340,000 Inventories, at lower of average cost or market......................................401,000 Prepaid expenses...................................12,000Total current assets .........................$1,103,000Long-term investmentsLand held for future use.........................175,000 Cash surrender value of life insurance..............................................90,000265,000Property, plant, and equipmentBuilding ................................................... $730,000Less: Accum. depr.building......... 160,000570,000 Office equipment ....................................265,000Less: Accum. depr.office equipment ...................................... 105,000160,000730,000Intangible assetsGoodwill ..................................................80,000Total assets......................................$2,178,0005-3EXERCISE 5-5 (Continued) Liabilities and Stockholders EquityCurrent liabilitiesAccounts payable...................................$ 135,000 Notes payable (due next year)...............125,000 Rent payable ...........................................49,000Total current liabilities .....................$309,000Long-term liabilitiesBonds payable........................................ $500,000Add: Premium on bonds payable.......... 53,000$553,000 Pension obligation..................................82,000635,000Total liabilities...................................944,000Stockholders equityCommon stock, $1 par, authorized 400,000 shares, issued 290,000 shares...................................................290,000Additional paid-in capital....................... 160,000450,000 Retained earnings ..................................784,000* Total stockholders equity ...............1,234,000Total liabilities and stock- holders equity...............................$2,178,000*$2,178,000 $944,000 $450,000 5-4EXERCISE 5-6 (3035 minutes) Geronimo Company Balance Sheet July 31, 2007 AssetsCurrent assetsCash.........................................................$60,000* Accounts receivable...............................$46,700**Less: Allowance for doubtful accounts.........................................3,50043,200 Inventories ..............................................65,300*** Total current assets .........................$168,500Long-term investmentsBond sinking fund ..................................Bond sinking fund ....
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This note was uploaded on 01/20/2011 for the course ACC 301 taught by Professor Staff during the Fall '08 term at Kentucky.

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Chapter 05 - Homework Solutions - 5-1CHAPTER 5 Balance...

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