Course Hero Logo

Determine the appropriate classification of each of

Doc Preview
Pages 5
Identified Q&As 5
Solutions available
Total views 100+
Determine the appropriate classification of each of these items.1.The $30,000 should be classified as a noncurrent asset, under theinvestments classification.2.$10,000, next year’s installment, should be classified as a currentliability, current maturities of long-term debt. The remaining $90,000 isincluded in long-term liabilities.3.Two-thirds of the unearned revenue, $40,000, should be classified as acurrent liability, the remaining $20,000 as a long-term liability.
Brief Exercise 3–7BE 3–7The following information is taken from the balance sheet of RaineerPlumbing: cash and cash equivalents, $40,000; accounts receivable, $120,000;inventories, ?; total current assets, $235,000; property, plant, and equipment(net), ?; total assets, $400,000; accounts payable, $32,000; note payable (duein two years), $50,000; common stock; $100,000; and retained earnings, ?.Determine the missing amounts.=$218,000
View full document
Brief Exercise 3–8BE 3–8For each of the following note disclosures, indicate whether the disclosure wouldlikely appear in (A) the summary of significant accounts policies or (B) aseparate note: (1) depreciation method; (2) contingency information; (3)significant issuance of common stock after the fiscal year-end; (4) cashequivalent designation; (5) long-term debt information; and (6) inventory costingmethod.Financialstatementdisclosures• LO3–4
View full document
Course Hero Badge

End of preview

Want to read all 5 pages? Upload your study docs or become a member.