ACCT315 1. The following are the common classifications used in a balance sheet:

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1.  The following are the common classifications used in a balance sheet:

 

A.Current assetsF. Current liabilities

B.InvestmentsG. Long-term liabilities

C.Property, plant and equipmentH. Paid-in-capital

D.Intangible assetsI. Retained earnings

E.Other assets

Required:

For each of the following balance sheet items, use the letters above to indicate the appropriate classification category.  If the item is a contra account or valuation account, place a minus sign before the chosen letter. 

 

1.___ Note receivable (due in 2 years)

 

2.___ Accounts receivable

 

3.___¬ Accumulated depreciation

 

4.___Land, in use

 

5.___Note payable (due in 10 months)

 

6.___Interest payable

 

7.___ Note receivable (due in 6 months)

 

8.___Cash equivalents

 

9.     ___ Investment in XYZ Corp ( long-term)

 

10.___ Inventories

 

11.___Goodwill

 

12.___Accrued salaries payable

 

13.___Accrued interest payable

 

14.___Prepaid insurance

 

15.___Common stock

 

16.___Equipment

 

17.___Unearned revenue

 

18.___Warranties payable

 

 

2.  The following are common disclosures that would appear in the notes accompanying financial statements.  For each of the items listed, indicate where the disclosure would likely appear.

Use A if the item would appear in summary of significant accounting policies notes

Use B if the item would appear in subsequent events notes

Use C if the item would appear in noteworthy events and transactions

 

1. Depreciation method        _

2. Information on related party transactions

3. Method of accounting for acquisitions

4. Composition and details of long-term debt

5. Inventory method

6. Basis of revenue recognition

7. Major damage to a plant facility occurring after year-end

8. Composition of accrued liabilities

 

3.  The December 31, 2013 post-closing trial balance for Tricam Engineering, an exploration company, is presented below. 

 

Account TitleDebitsCredits

Cash 52,000

Accounts receivable 223,000

Allowance for uncollectible accounts 15,000

Inventories 200,000

Supplies 3,000

Investments 140,000

Land 100,000

Buildings 500,000

Accumulated depreciation - buildings 150,000

Machinery 250,000

Accumulated depreciation - machinery 80,000

Goodwill 36,000

Accounts payable 125,000

Bonds payable 500,000

Interest payable 40,000

Common stock 500,000

Retained earnings         ______   94,000

                   Totals 1,504,0001,504,000

Additional information provided is below:

1.Accounts receivable includes a $50,000 note receivable received from a customer that is due in 2015.  Also included is interest on the note of $3,000 that is due in six months.

2.The land account includes land that cost $20,000 that the company has not used and is currently listed for sale.

3. The investment account includes a $10,000, 3-month certificate of deposit due in 40 days.  The remaining investments will be sold within the next year.

4. The bonds  payable account consists of the following:

a.a $200,000 issue due in six months.

b.a $300,000 issue due in six years.

5. The common stock account represents 500,000 shares of no par value common stock issued and outstanding.  The corporation has 1,000,000 shares authorized.

 

Required:

Prepare a classified balance sheet for Tricam Engineering at December 31, 2013 using the post-closing trial balance and the additional information provided. 

 

 

 

 

 

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