Total liabilities and stockholders equity XXX EXERCISE 5 5 3035 minutes Uhura

Total liabilities and stockholders equity xxx

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Total liabilities and stockholders’ equity ...................................................... $XXX
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EXERCISE 5-5 (30–35 minutes) Uhura Company Balance Sheet December 31, 2014 Assets Current assets Cash ............................................................................... $230,000 Equity investments (trading) ....................................... 120,000 Accounts receivable ...................................................... $357,000 Less: Allowance for doubtful accounts ................................................................ 17,000 340,000 Inventory, at lower-of-average cost-or-market ............................................................ 401,000 Prepaid expenses ........................................................... 12,000 Total current assets ................................................. $1,103,000 Long-term investments Land held for future use .............................................. 175,000 Cash surrender value of life insurance .................................................................... 90,000 265,000 Property, plant, and equipment Buildings ........................................................................ $730,000 Less: Accum. depr.—buildings .............................. 160,000 570,000 Equipment ..................................................................... 265,000 Less: Accum. depr.—equipment ........................... 105,000 160,000 730,000 Intangible assets Goodwill ........................................................................ 80,000 Total assets .............................................................. $2,178,000
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EXERCISE 5-5 (Continued) Liabilities and Stockholders’ Equity Current liabilities Accounts payable .......................................................... $ 135,000 Notes payable (due next year) ..................................... 125,000 Rent payable ................................................................. 49,000 Total current liabilities ........................................... $309,000 Long-term liabilities Bonds payable ............................................................... $500,000 Add: Premium on bonds payable ................................ 53,000 $ 553,000 Pension obligation ......................................................... 82,000 635,000 Total liabilities ......................................................... 944,000 Stockholders’ equity Common stock, $1 par, authorized 400,000 shares, issued 290,000 shares .......................................................................... 290,000 Additional paid-in capital ............................................ 160,000 450,000 Retained earnings ......................................................... 784,000 * Total stockholders’ equity ...................................... 1,234,000 Total liabilities and stockholders’ equity ............................................. $2,178,000 *$2,178,000 – $944,000 – $450,000
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EXERCISE 5-6 (30–35 minutes) Geronimo Company Balance Sheet July 31, 2014 Assets Current assets Cash .............................................................................................. $60,000* Accounts receivable ..................................................................... $38,700** Less: Allowance for doubtful accounts ............................................................................... 3,500 35,200 Inventory ...................................................................................... 65,300 *** Total current assets ................................................................ $160,500 Long-term investments Bond sinking fund ....................................................................... 15,000 Property, plant, and equipment Equipment .................................................................................... 112,000 Less: Accumulated depreciation— equipment ..................................................................... 28,000 84,000 Intangible assets Patents .......................................................................................... 21,000 Total assets ............................................................................. $280,500 *($69,000 – $15,000 + $6,000) **($44,000 – $5,300) ***($60,000 + $5,300)
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EXERCISE 5-6 (Continued) Liabilities and Stockholders’ Equity Current liabilities Notes and accounts payable ........................................................ $ 44,000 Income taxes payable .................................................................. 6,000 Total current liabilities .......................................................... $ 50,000 Long-term liabilities .......................................................................... 75,000 Total liabilities ........................................................................ 125,000 Stockholders’ equity .......................................................................... 155,500 Total liabilities and stock- holders’ equity ..................................................................... $280,500
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EXERCISE 5-7 (15–20 minutes) Current assets Cash ................................................................................................ $ 87,000* Less: Restricted cash (plant expansion) ...................................... 50,000 $ 37,000 Trading securities at fair value (cost, $31,000) ....................................................................................... 29,000 Accounts receivable (of which $50,000 is pledged as collateral on a bank loan) ....................................... 161,000 Less: Allowance for doubtful accounts ....................................... 12,000 149,000 Interest receivable [($40,000 X 6%) X 8/12] ............................... 1,600 Inventories at lower of cost (determined using LIFO) or market Finished goods ......................................................................... 52,000 Work in process ....................................................................... 34,000 Raw materials .......................................................................... 207,000 293,000 Total current assets ........................................................... $509,600 *An acceptable alternative is to report cash at $37,000 and simply report the restricted cash (plant expansion) in the investments section.
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EXERCISE 5-8 (10–15 minutes) 1. Dividends payable of $2,375,000 will be reported as a current liability [(1,000,000 – 50,000) X $2.50]. 2. Bonds payable of $25,000,000 and interest payable of $3,000,000 ($100,000,000 X 12% X 3/12) will be reported as a current liability. Bonds payable of $75,000,000 will be reported as a long-term liability. 3. Customer advances of $17,000,000 will be reported as a current liability ($12,000,000 + $30,000,000 – $25,000,000). EXERCISE 5-10 (15–20 minutes) (a) In order for a liability to be reported for threatened litigation, the amount must be probable and payment reasonably estimable. Since these conditions are not met an accrual is not required.
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  • Spring '13
  • Akitson,Rubble,Larson
  • Balance Sheet, ........., Generally Accepted Accounting Principles

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