Prepare a classified
Explanation of Solution
Classified balance sheet: The main elements of balance sheet assets, liabilities, and
Prepare a classified balance sheet of Company M for the year ended December 31, 2016 as follows:
Company M | ||
Balance Sheet | ||
For Year Ended December 31, 2016 | ||
Assets: | Amount ($) | Amount ($) |
Current Assets: | ||
Cash (1) | 3,300 | |
Accounts receivable (net) (2) | 5,000 | |
Inventory (3) | 4,200 | |
Total current assets | 12,500 | |
Property, Plant, and Equipment: | ||
Land (4) | 6,800 | |
Buildings and equipment (5) | 82,800 | |
Less: | (16,000) | |
Total property, plant, and equipment | 73,600 | |
Total Assets | 86,100 | |
Liabilities: | ||
Current Liabilities: | ||
Accounts payable (7) | 3,000 | |
Salaries payable (8) | 1,500 | |
Total current liabilities | 4,500 | |
Long-Term Liabilities: | ||
Bonds payable | 6,000 | |
Less: Discount on bonds payable (9) | (300) | |
Total long-term liabilities | 5,700 | |
Total Liabilities (a) | 10,200 | |
Shareholders’ Equity: | ||
Contributed Capital: | ||
Common stock, $10 par (10) | 16,500 | |
Additional paid-in capital (11) | 12,700 | |
Total contributed capital | 29,200 | |
Retained earnings (12) | 46,700 | |
Total Shareholders’ Equity (b) | 75,900 | |
Total Liabilities and Shareholders’ Equity | 86,100 |
Table (1)
Working note (1):
Compute the amount of cash:
Working note (2):
Compute the amount of accounts receivable:
Working note (3):
Compute the amount of inventory:
Working note (4):
Compute the value of land:
Working note (5):
Compute the value of building and equipment:
Working note (6):
Compute the amount of accumulated depreciation:
Working note (7):
Compute the amount of accounts payable:
Working note (8):
Compute the amount of salaries payable:
Working note (9):
Compute the amount of discount on bonds payable:
Working note (10):
Compute the amount of common stock:
Working note (11):
Compute the amount of additional paid-in capital:
Working note (12):
Compute the amount of retained earnings:
Want to see more full solutions like this?
Chapter 5 Solutions
EBK INTERMEDIATE ACCOUNTING: REPORTING
- Dunn Company recognized a 5,000 unrealized holding gain on investment in Starbuckss long-term bonds during 2019. The company classified its investment as an available-for-sale security. How would this information be reported on a statement of cash flows prepared using the indirect method?arrow_forwardComprehensive: Balance Sheet from Statement of Cash Flows Mills Company prepared the following balance sheet at the beginning of 2019: Additional information related to the statement of cash flows: 1. The long-term bonds have a face value of 6,000 and were issued on December 31, 2019. 2. The building was purchased on December 30, 2019. 3. The land was sold at its original cost. 4. The common stock which was sold totaled 300 shares and had a par value of 10 per share. Required: Next Level Prepare a classified balance sheet for Mills as of December 31, 2019. (Hint. Review the information on the statement of cash flows and the balances in the beginning balance sheet accounts to determine the impact on the ending balance sheet accounts.)arrow_forwardBTS Inc. has recorded the following transactions on its book for the year 2021. How much total Cash Inflow from financing activities that BTS should reflected on its Statement of Cash Flow:i. Payment for interest of the issued bonds on April 1, 2021, 900.ii. Cash dividend received on the short-term investment, 5,000iii. Depreciation on plant that manufactures goods for sale, 6,000.iv. Payment of income tax on gain on sale of treasury bills, 2,000.v. Issued 500 ordinary shares for 50,000.vi. Received cash from interest on the acquired treasury bonds of BigHit Corp, 2,400.vii. Payment for marketable securities, 12,000arrow_forward
- IZZY Company recorded the following transactions for the year 2018: Collection of accounts recervable Purchases of patent for cash Dividends paid Acquisiton of South Company ordinary shares for cansh Sale of investment securities for cash 3,900,000 1,125,000 1,125,000 2,625,000 2,250,000 Issuance of P3,750,000 face value bonds for cash Payment of accounts payable Acquisition of land through the issuance of 30,000 ordinary shares, par P100 Dividends received Payment of bank loan 3,900,000 1,875,000 3,600,000 900,000 1,500,000 Additional information: 1. The net income for the period amounted to P4,875,000. 2. The cash paid for the shares acquired from South Company was barrowed from Partner Commercial Bank. Required: Compute the following: 1. Net cash provided by financing activities 2. Net cash used by investing activitiesarrow_forwardPresented below are data taken from the records of Sheffield Company. December 31,2020 December 31,2019 Cash $15,100 $7,900 Current assets other than cash 85,800 59,800 Long-term investments 10,100 53,000 Plant assets 335,200 214,500 $446,200 $335,200 Accumulated depreciation $20,200 $40,200 Current liabilities 39,600 22,000 Bonds payable 75,800 –0– Common stock 252,800 252,800 Retained earnings 57,800 20,200 $446,200 $335,200 Additional information: 1. Held-to-maturity debt securities carried at a cost of $42,900 on December 31, 2019, were sold in 2020 for $33,600. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $49,600 and were 80% depreciated were sold during 2020 for $7,900. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the…arrow_forwardKeurig Green Mountain's Current Liabilities Following is the current assets and current liabilities portion of the balance sheet of Keurig Green Mountain for the years ended September 26, 2015, and September 27, 2014: (Dollars in thousands) September 26, 2015 September 27, 2014 Current assets: Cash and cash equivalents $59,334 $761,214 Restricted cash and cash equivalents 30,460 378 Short-term investment — 100,000 Receivables, less uncollectible accounts and return allowances of $35,459 and $66,120 at September 26, 2015 and September 27, 2014, respectively 517,936 621,451 Inventories 691,980 835,167 Income taxes receivable 51,786 — Other current assets 95,526 69,272 Deferred income taxes, net 70,181 58,038 Total current assets $1,517,203 $2,445,520 Current liabilities: Current portion of long-term debt…arrow_forward
- Keurig Green Mountain's Current Liabilities Following is the current assets and current liabilities portion of the balance sheet of Keurig Green Mountain for the years ended September 26, 2015, and September 27, 2014: (Dollars in thousands) September 26, 2015 September 27, 2014 Current assets: Cash and cash equivalents $59,334 $761,214 Restricted cash and cash equivalents 30,460 378 Short-term investment — 100,000 Receivables, less uncollectible accounts and return allowances of $35,459 and $66,120 at September 26, 2015 and September 27, 2014, respectively 517,936 621,451 Inventories 691,980 835,167 Income taxes receivable 51,786 — Other current assets 95,526 69,272 Deferred income taxes, net 70,181 58,038 Total current assets $1,517,203 $2,445,520 Current liabilities: Current portion of long-term debt…arrow_forwardXS Supply Company is developing its annual financial statements at December 31, 2017. The statements are complete except for the statement of cash flows. The completed comparative balance sheets and income statement are summarized: 2017 2016 Balance Sheet at December 31 Cash $ 37,120 $ 30,800 Accounts Receivable 37,850 30,800 Merchandise Inventory 47,900 40,900 Property and Equipment 175,250 132,000 Less: Accumulated Depreciation (38,250 ) (33,000 ) $ 259,870 $ 201,500 Accounts Payable $ 42,850 $ 32,500 Wages Payable 1,430 2,050 Note Payable, Long−Term 32,700 44,100 Contributed Capital 104,500 80,600 Retained Earnings 78,390 42,250 $ 259,870 $ 201,500 Income Statement for 2017 Sales $ 202,000 Cost of Goods Sold…arrow_forwardConsider the financial statements alongside the notes presented by Simple Things Industries and prepare the statement of cash flows for the year ended December 31, 2014. Notes Acquisition of plant asset during 2014 310,000 Sale proceed from sale of plant asset 50,000 Receipt for issuance of notes payable 90,000 Payment for note payable 10,000 Dividend paid 10,000arrow_forward
- Preparing the Cash Flow from Financing Activities Section Gomez Corp. reported the following items for the year ended December 31, 2020. Item Dec 31, 2020 Purchased an investment in debt securities (long-term) for cash $ 42,000 Sold equipment for cash, previously used in operations 35,000 Paid cash for dividends 14,000 Issued common stock for cash 140,000 Retired a 10-year bond payable by repaying the face value at maturity 112,000 Sold investment in equity securities (held for one-year) 15,400 Borrowed cash by signing a nine-month note payable 21,000 Extended a loan to a customer for a building expansion 11,200 Use a negative sign with your answer to indicate a cash outflow, if applicable. Calculate net cash from financing activities for the year ended December 31, 2020. Answerarrow_forwardPresented below are data taken from the records of Crane Company. December 31, 2020 December 31, 2019 Cash $15,000 $7,900 Current assets other than cash 85,700 60,300 Long-term investments 10,000 52,700 Plant assets 334,400 216,700 $445,100 $337,600 Accumulated depreciation $20,100 $39,800 Current liabilities 39,700 22,100 Bonds payable 74,600 –0– Common stock 252,600 252,600 Retained earnings 58,100 23,100 $445,100 $337,600 Additional information: 1. Held-to-maturity debt securities carried at a cost of $42,700 on December 31, 2019, were sold in 2020 for $34,000. The loss (not unusual) was incorrectly charged directly to Retained Earnings. 2. Plant assets that cost $49,600 and were 80% depreciated were sold during 2020 for $8,000. The loss was incorrectly charged directly to Retained Earnings. 3. Net income as reported on the…arrow_forward28. mELON Inc. has recorded the following transactions on its book for the year 2021. How much total Cash Inflow from financing activities that BT21 should reflected on its Statement of Cash Flow:i. Payment for interest of the issued bonds on April 1, 2021, 900.ii. Cash dividend received on the short-term investment, 5,000iii. Depreciation on plant that manufactures goods for sale, 6,000.iv. Payment of income tax on gain on sale of treasury bills, 2,000.v. Issued 500 ordinary shares for 50,000.vi. Received cash from interest on the acquired treasury bonds of BigHit Corp, 2,400.vii. Payment for marketable securities, 12,000.arrow_forward
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage LearningFinancial Accounting: The Impact on Decision Make...AccountingISBN:9781305654174Author:Gary A. Porter, Curtis L. NortonPublisher:Cengage LearningCornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning