ACC 305 - Assignmnent
loka9502
img_20130724_0006.pdf
162 SECTION 1
Judgment Case 3-6 Financial disclosures
3 LOs
The Role of Accounting as an lnformation System
(concluded) Otherassets: Land Equipment, net Prepaid expenses Patent
Total other assets
Total assets
$200,000 320,000
27,000 22,000
569,000
$1 ,1 45,000
Liabilities and Shareholders' Equity
Current liabilities: Accounts payable Salaries payable
Total current liabilities
Long-term liabilities: Note payable Bonds payable
lnterest payable
Total long-term liabilities
Shareholders' equity: Common stock Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity $1,14s,000
In the corLrse of vour eramjnation \ oll Llncover the follou ing intbrrnation pertainrng to the balance shcet l. The companv rents its tlLcilities. The land that appears in the statement is being held for l'uture sale. 2. The note receireble is due in 1013. The bi,rlance of 553.000 includes S3,000 of accrued interest. The rt.
interest pa\'1rent rs duc in Jull 2t) I 2. 3. The note pa),able is due in installntents of $10.000 per vear. Interest on both the notes and bonds is pa.
annual11,.
-1. The co|npanr''s inlestments cor-rsist of n'rarketable equitl' securities ol other corporations. Managente| not intencl to liquidate anv investments in the coming vear.
Iclentifl,ancl erplarn tl-re deficiencies in the statelnent prepared bv the compan)'s accountant. Include ans..rer iter.ns that require additional disclosure. either on the lace of the staterrent or in rnote.
You reccntlv joined the auditrn_s statf ol Best. Best. and Kru-e. CPAs. You have been assigned to the . Cleanieri.Inc.. and have bcen askeci bv the audit senior to eramine the balance sl-reet prepared by Clc:. accoLrntilnt,
$1 00,000
300,000 20,000
500,000
68,000
$ 12s,000 32,000
157,000
420,000
568,000
CLEARVIEW, INC. Balance Sheet
At December 31,2011 ($ in millions)
Assets
Current assets: Cash Accounts receivable lnventories Prepaid expenses
Total current assets
I nvestments Property, plant, and equipment, net
Total assets
$ 10.s 112.1 220.6
5.5
34t-7
22.0 486.9
$8s7.6 (contl'
