Chapter_5_Balance_Sheet_And_Statement_Of_Cash_Flows_Solution_To_Class_Problem_5-3

Chapter_5_Balance_Sheet_And_Statement_Of_Cash_Flows_Solution_To_Class_Problem_5-3

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
PROBLEM 5-3 EASTWOOD COMPANY Balance Sheet December 31, 2010 Assets Current assets Cash. ..................................................... $ 41,000 Accounts receivable. ........................... $163,500 Less: Allowance for doubtful accounts. ............................. 8,700 154,800 Inventory (LIFO cost). .......................... 208,500 Prepaid insurance. ............................... 5,900 Total current assets. ...................... $ 410,200 Long-term investments Investments in stocks and bonds, ($120,000 have been pledged as security for notes payable)— at fair value. ....................................... 339,000 Property, plant, and equipment Cost of uncompleted plant facilities Land. ................................................ 85,000 Building in process of construction. ............................... 124,000 209,000 Equipment. ............................................ 400,000 Less: Accum. depreciation. ......... 240,000 160,000 369,000 Intangible assets Patents (at cost less amortization). ... 36,000 Total assets. ....................................
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $1,154,200 PROBLEM 5-3 (Continued) Liabilities and Stockholders’ Equity Current liabilities Notes payable, secured by investments of $120,000. ................... $ 94,000 Accounts payable. ............................... 148,000 Accrued expenses. .............................. 49,200 Total current liabilities. .................. $ 291,200 Long-term liabilities 8% bonds payable, due January 1, 2021. ................................ 200,000 Less: Unamortized discount on bonds payable. ................................. 20,000 180,000 Total liabilities. ............................... 471,200 Stockholders’ equity Common stock Authorized 600,000 shares of $1 par value; issued and outstanding, 500,000 shares. ....... $500,000 Paid in capital in excess of par—common stock. ....................... 45,000 545,000 Retained earnings. ............................... 138,000 683,000 Total liabilities and stockholders’ equity. .................. $1,154,200...
View Full Document

This note was uploaded on 02/12/2012 for the course ACCT 3001 taught by Professor Moffitt during the Spring '08 term at LSU.

Page1 / 2

Chapter_5_Balance_Sheet_And_Statement_Of_Cash_Flows_Solution_To_Class_Problem_5-3

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online