Q3-6 - Particulars Details Amount Current Asset Cash 3000...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Image of page 1

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

View Full Document Right Arrow Icon
Classified Balance Sheet as at 31st December 2010
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

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....
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