WEEK 3 EXERCISES

Koch Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2014: Cash $7,000; Land $40,000; Patents $12,500; Accounts Receivable $90,000; Prepaid Insurance $5,200; Inventory $30,000; Allowance for Doubtful Accounts $4,000; Equity Investments (trading) $11,000.

Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)

Koch Corporation Balance Sheet (Partial) December 31, 2014
:					$
					$
(b)		Treasury Stock.
(c)		Common Stock.
(d)		Dividends Payable.
(e)		Accumulated Depreciation-Equipment.
(f)(1)		Construction in Process (Constructed for another party).
(f)(2)		Construction in Process (Constructed for the use of Deep Blue Something, Inc.).
(g)		Petty Cash.
(h)		Interest Payable.
(i)		Deficit.
(j)		Equity Investments (trading).
(k)		Income Taxes Payable.
(l)		Unearned Subscription Revenue.
(m)		Work in Process.
(n)		Salaries and Wages Payable.

Exercise 5-4 Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1.   Common Stock   14.   Accumulated Depreciation-Buildings. 2.   Discount on Bonds Payable.   15.   Cash Restricted for Plant Expansion. 3.   Treasury Stock (at cost).   16.   Land Held for Future Plant Site. 4.   Notes Payable (short-term).   17.   Allowance for Doubtful Accounts. 5.   Raw Materials   18.   Retained Earnings. 6.   Preferred Stock (Equity) Investments (long-term).   19.   Paid-in Capital in Excess of Par-Common Stock. 7.   Unearned Rent Revenue.   20.   Unearned Subscriptions Revenue. 8.   Work in Process.   21.   Receivables-Officers (due in one year). 9.   Copyrights.   22.   Inventory (finished goods). 10.   Buildings.   23.   Accounts Receivable. 11.   Notes Receivable (short-term).   24.   Bonds Payable (due in 4 years). 12.   Cash.   25.   Noncontrolling Interest. 13.   Salaries and Wages Payable.         Prepare a classified balance sheet in good form. (List Current Assets in order of liquidity. For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers, Inventory, Bonds Payable, and Restricted Cash, enter the account name only and do not provide the descriptive information provided in the question.) Denis Savard Inc. Balance Sheet December 31, 20― Assets                    :  :              $XXX                                XXX                    :                                 $XXX Liabilities and Stockholders' Equity                                $XXX                    :              XXX                                                           XXX             XXX            :              XXX

Exercise 5-7 Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2014. Inventory (finished goods)   $ 52,000   Cost of Goods Sold   $2,100,000 Unearned Service Revenue   90,000   Notes Receivable   40,000 Equipment   253,000   Accounts Receivable   161,000 Inventory (work in process)   34,000   Inventory (raw materials)   207,000 Cash   37,000   Supplies Expense   60,000 Equity Investments (short-term)   31,000   Allowance for Doubtful Accounts   12,000 Customer Advances   36,000   Licenses   18,000 Restricted Cash for Plant Expansion   50,000   Additional Paid-in Capital   88,000         Treasury Stock   22,000 The following additional information is available. 1.   Inventories are valued at lower-of-cost-or-market using LIFO. 2.   Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $50,600. 3.   The short-term investments have a fair value of $29,000. (Assume they are trading securities.) 4.   The notes receivable are due April 30, 2016, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrued interest due on December 31, 2014.) 5.   The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $50,000 are pledged as collateral on a bank loan. 6.   Licenses are recorded net of accumulated amortization of $14,000. 7.   Treasury stock is recorded at cost. Prepare the current assets section of Yasunari Kawabata Company’s December 31, 2014, balance sheet, with appropriate disclosures. (List Current Assets in order of liquidity. Enter account name only and do not provide the descriptive information provided in the question.) Yasunari Kawabata Company Balance Sheet (Partial) December 31, 2014             :  :          $             :          $                                 :  :                                      $                     $                                                           :

Exercise 24-2