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 icon This 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 .....................................
Image of page 1

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

View Full Document Right Arrow Icon
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

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern