Q3-6 - o Q3-6 Accounts payable is money the company owes to...

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o Q3-6 Accounts payable is money the company owes to it suppliers, vendors, utilities etc, thus AP is a liability. For AP the intent is they will pay cash out, reducing their liability and reducing their cash. Accounts receivable is money that the company has owed to them, for example, money their customers owe to them. AR is an asset, the intent is they will receive cash, increasing their cash and reducing the AR. Amounts due from sales or services, carried at net realizable value (net of allowances), and all allowances are presented in on allowance account Q3-15 Items classificaiton s a. Supplies CA b. Notes receivable CA c. Unearned subscription revenue CL d. Accounts payable CL e. Retained earnings E f. Accounts receivable CA g. Preferred stock E h. Plant NA i. Prepaid rent CA j. Capital E k. Wages payable CL l. Mortgage bonds payable NL m. Unearned interest CL n. Marketable securities NA o. Paid in capital from sale of treasury stock E p. Land NA q. Inventories CA r. Taxes accrued CL s. Cash CA P3-1 In the Books of Lukes Inc
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Classified Balance Sheet as at 31st December 2010
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Unformatted text preview: Particulars Details Amount Current Asset Cash 3000 Receivables, less allowance of $3,000 58000 Invent ory 54000 Prepai d expenses 2000 117000 Plant and Equipment Machinery and equipment 300000 Less: Accumulated depreciation-200000 100000 Other Asset Buildin gs 75000 Land 11000 Other assets (long term) 7000 93000 Total Asset 310000 Current Liabilities Accou nts Payable 35000 Other accrued expenses 8000 Accrue 3000 d income taxes Current portion of long-term debt 7000 53000 Long Term Liabilities Deferred Income Tax Liability 24000 Long tem debt 99870 123870 Owner's Equity Common Stock (5,724 issued) 3180 Retain ed Earnings 129950 133130 Liability and Owners Equity 310000 Student Comments : Attached Files : Instructor Feedback Grade : 105 out of 100 Comments : 75+5 Q3-15 N is current asset. For P3-1, it looks like you did the wrong problem, those numbers do not tie back to P3-1. You can email me the correct P3-1 for points if you prefer....
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  • Spring '12
  • ?
  • Balance Sheet, AP, Generally Accepted Accounting Principles, CL NL CL

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