Intermediate Accounting Chapter 3 Homework
Waqas Ahmed| The following is a December 31, 2016, post-closing trial balance for the Jackson Corporation. |
| Account Title | Debits | Credits | ||
| Cash | 51,000 | |||
| Accounts receivable | 45,000 | |||
| Inventories | 86,000 | |||
| Prepaid rent | 27,000 | |||
| Marketable securities (short term) | 21,000 | |||
| Machinery | 200,000 | |||
| Accumulated depreciation—machinery | 22,000 | |||
| Patent (net of amortization) | 90,000 | |||
| Accounts payable | 13,500 | |||
| Wages payable | 9,500 | |||
| Taxes payable | 43,000 | |||
| Bonds payable (due in 10 years) | 250,000 | |||
| Common stock | 140,000 | |||
| Retained earnings | 42,000 | |||
| Totals | 520,000 | 520,000 | ||
| Required: |
Prepare a classified balance sheet for Jackson Corporation at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.) |
Cone Corporation is in the process of preparing its December 31, 2016, balance sheet. There are some questions as to the proper classification of the following items: |
| a. | $67,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2020. |
| b. | Prepaid rent of $41,000, covering the period January 1, 2017, through December 31, 2018. |
| c. | Note payable of $234,000. The note is payable in annual installments of $37,000 each, with the first installment payable on March 1, 2017. |
| d. | Accrued interest payable of $29,000 related to the note payable. |
| e. | Investment in marketable securities of other corporations, $114,000. Cone intends to sell one-half of the securities in 2017. |
| Required: | |
Prepare a partial classified balance sheet to show how each of the above items should be reported. | |
The current asset section of Guardian Consultant’s balance sheet consists of cash, accounts receivable, and prepaid expenses. The 2016 balance sheet reported the following: cash, $1,360,000; prepaid expenses, $420,000; noncurrent assets, $3,000,000; and shareholders’ equity, $3,100,000. The current ratio at the end of the year was 2.8 and the debt to equity ratio was 2.0. |
| Required: | |
| Determine the following 2016 amounts and ratios: (Round your "The acid-test ratio" answer to 1 decimal place.) |
The following is the ending balances of accounts at December 31, 2016, for the Vosburgh Electronics Corporation. |
| Account Title | Debits | Credits | ||||
| Cash | 103,000 | |||||
| Short-term investments | 218,000 | |||||
| Accounts receivable | 159,000 | |||||
| Long-term investments | 53,000 | |||||
| Inventories | 233,000 | |||||
| Loans to employees | 58,000 | |||||
| Prepaid expenses (for 2017) | 34,000 | |||||
| Land | 298,000 | |||||
| Building | 1,730,000 | |||||
| Machinery and equipment | 655,000 | |||||
| Patent | 170,000 | |||||
| Franchise | 58,000 | |||||
| Note receivable | 340,000 | |||||
| Interest receivable | 30,000 | |||||
| Accumulated depreciation—building | 638,000 | |||||
| Accumulated depreciation—equipment | 228,000 | |||||
| Accounts payable | 207,000 | |||||
| Dividends payable (payable on 1/16/17) | 28,000 | |||||
| Interest payable | 34,000 | |||||
| Taxes payable | 58,000 | |||||
| Deferred revenue | 78,000 | |||||
| Notes payable | 336,000 | |||||
| Allowance for uncollectible accounts | 26,000 | |||||
| Common stock | 2,072,000 | |||||
| Retained earnings | 434,000 | |||||
| Totals | 4,139,000 | 4,139,000 | ||||
| Additional information: |
| 1. | The common stock represents 1.5 million shares of no par stock authorized, 680,000 shares issued and outstanding. |
| 2. | The loans to employees are due on June 30, 2017. |
| 3. | The note receivable is due in installments of $68,000, payable on each September 30. Interest is payable annually. |
| 4. | Short-term investments consist of marketable equity securities that the company plans to sell in 2017 and $68,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2017. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year. |
| 5. | Deferred revenue represents customer payments for extended service contracts. Seventy five percent of these contracts expire in 2017, the remainder in 2018. |
| 6. | Notes payable consists of two notes, one for $118,000 due on January 15, 2018, and another for $218,000 due on June 30, 2019. |
| Required: |
Prepare a classified balance sheet for Vosburgh at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.) |
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