Chapter 03 Solution - Exercise 3-1 1. c 2. f 3. -a _ 4. b_...

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Exercise 3-1 1. c Equipment 10. a Inventories 2. f Accounts payable 11. d _ Patent 3. -a _ Allowance for uncollectible accounts 12. c Land, in use 4. b _ Land, held for investment 13. f _ Accrued liabilities 5. g _ Note payable, due in 5 years 14. a Prepaid rent 6. f Unearned rent revenue 15. h _ Common stock 7. f Note payable, due in 6 months 16. c Building, in use 8. i Income less dividends, accumulated 17. a Cash 9. b Investment in XYZ Corp., long-term 18. f _Taxes payable
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Exercise 3-5 CASA DE FIESTA CORPORATION Balance Sheet At December 31, 2006 Assets Current assets: VEB Cash . ....................................................................... 30,000 Accounts receivable, net of allowance for uncollectible accounts of 5,000 . .......................... 65,000 Inventories . .............................................................. 55,000 Total current assets . ........................................... 150,000 Investments: Bond sinking fund . .................................................. 20,000 Note receivable . ....................................................... 10,000 Total investments . .............................................. 30,000 Property, plant, and equipment: Machinery . .............................................................. 190,000 Less: Accumulated depreciation . ............................. (70,000 ) Net property, plant, and equipment . ................... 120,000 Intangibles: Franchise . ................................................................ 30,000 Total assets . ..................................................... 330,000 Liabilities and Shareholders' Equity Current liabilities: VEB Accounts payable . ................................................... 60,000 Interest payable . ...................................................... 5,000 Note payable . .......................................................... 50,000 Total current liabilities . ...................................... 115,000 Long-term liabilities: Bonds payable . ........................................................ 110,000 Shareholders’ equity: Common stock, no par value; 100,000 shares authorized; 50,000 shares issued and outstanding 70,000 Retained earnings . ................................................... 35,000 Total shareholders’ equity . ................................. 105,000 Total liabilities and shareholders’ equity . ........ 330,000
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Exercise 3-8 ARAGONS CORPORATION Balance Sheet (Partial) At December 31, 2006 Assets Current assets: UYU Marketable securities . ........................................ 40,000 Prepaid rent . ....................................................... 12,000 Investments: Bond sinking fund . ............................................. 60,000 Marketable securities . ........................................ 40,000 Other assets: Prepaid rent (1) ................................................... 12,000 Liabilities and Shareholders' Equity Current liabilities: UYU Interest payable . ................................................. 15,000
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This note was uploaded on 07/06/2011 for the course ECON 103 taught by Professor Frolova during the Spring '11 term at London College of Accountancy.

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Chapter 03 Solution - Exercise 3-1 1. c 2. f 3. -a _ 4. b_...

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