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SOLUTIONS TO BRIEF EXERCISES-5-1

SOLUTIONS TO BRIEF EXERCISES-5-1 - SOLUTIONS TO BRIEF...

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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
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Total investments ....................................... $137,000
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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
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BRIEF EXERCISE 5-7 Current liabilities Notes payable ................................................... $ 22,500 Accounts payable ............................................. 72,000
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