A311chapter 5 problems

A311Chapter 5 Problems
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Unformatted text preview: E5-2(Classification of Statement of Financial Position Accounts)Presented below are the captions of Nikos Company's balance sheet. (a)Non-current assets.(c) Equity.(1)Investments.(d) Non-current liabilities.(2)Property, plant, and equipment. (e) Current liabilities.(3)Intangible assets. (4) Other assets.(b)Current assets.Indicate by letter where each of the following items would be classified. 1.Share capital-preference.c2.Goodwill.a33.Wages payable.e4.Trade accounts payable.e5.Buildings. a26.Trading securities.b7.Current portion of long-term debt. e8.Patent.a39.Allowance for doubtful accounts.b10.Accounts receivable.b11.Accumulated other comprehensive income.c12.Notes payable (due next year). e13.Office supplies.b14.Share capital-ordinary.c15.Land.a216.Bond sinking fund.a117.Merchandise inventory.b18.Prepaid insurance.b19.Bonds payable.d20.Taxes payable.e*************************************************************************************E5-4(Preparation of a Classified Statement of Financial Position)Assume that Gulistan Inc. has the following accounts at the end of the current year. 1.Share Capital-Ordinary.14.Accumulated DepreciationBuildings.2.Long-Term Note Payable.15.Cash Restricted for Plant Expansion.3.Treasury Stock (at cost). 16.Land Held for Future Plant Site.4.Note Payable, short-term.17.Allowance for Doubtful Accounts-5.Raw Materials. Accounts Receivable.6.Long-Term Investment in Preference Shares.18.Retained Earnings. 7.Unearned Rent Revenue.19.Share Premium-Ordinary.8.Work in Process. 20.Unearned Subscriptions Revenue.9.Copyrights. 21.ReceivablesOfficers (due in one year).10.Buildings.22.Finished Goods.11.Notes Receivable (short-term). 23.Accounts Receivable. 12.Cash.24.Bonds Payable (due in 4 years). 13.Accrued Salaries Payable.Prepare a classified statement of financial position in good form. (No monetary amounts are necessary. List current assets in reverse order of liquidity and current liabilities in alphabetical order, with notes first.)GULISTAN INC.Statement of Financial PositionDecember 31AssetsNon-current assetsLong-term investmentsLong-term investment in preference shares$XXXLand held for future plant siteXXXCash restricted for plant expansionXXXTotal long-term investments$XXXProperty, plant, and equipmentBuildingsXXXLess: Accumulated depreciation-buildingsXXXXXXIntangible assetsCopyrightsXXX*************************************************************************************E5-5(Preparation of a Corrected Statement of Financial Position)Bruno Company has decided to expand its operations. The bookkeeper recently completed the balance sheet presented below in order to obtain additional funds for expansion. BRUNO COMPANYStatement of Financial PositionDecember 31, 2010Current assetsCash $260,000Accounts receivable (net)340,000Inventories at lower-of-average-cost-or-net realizable value401,000Trading securities-at cost (fair value $120,000)140,000Property, plant, and equipmentBuilding (net)570,000Office equipment (net)...
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