Académique Documents
Professionnel Documents
Culture Documents
1.
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Patents should be classified under Intangibles rather than Property, Plant, and
Equipment.
(8)
(9)
(10)
(11)
Accumulated depreciation: buildings is not a current liability. It is a contraasset account and should be placed immediately after the Buildings account
in Property, Plant, and Equipment.
(12)
(13)
(14)
(15)
(16)
(17)
(18)
(19)
P4-6
2.
(continued)
(20)
(21)
(22)
(23)
Assets
Current Assets:
Cash....................................................................
Marketable securities, short-term.......................
Accounts receivable............................................
Less: Allowance for doubtful accounts................
Inventory, at cost (market value, $28,000).........
Total current assets.......................................
Long-Term Investments:
Investment in D Company bonds (at book value)
Cash surrender value of life insurance................
Sinking fund to retire bonds................................
Total long-term investments..........................
Property, Plant, and Equipment:
Land....................................................................
Buildings.............................................................
Less: Accumulated depreciation..........................
Equipment..........................................................
Less: Accumulated depreciation..........................
Total property, plant, and equipment............
Intangibles:
Patents (net).......................................................
Trademarks.........................................................
Total intangibles............................................
Total Assets...............................................................
(continued on next page)
$6,300
10,000
$15,900
(700)
15,200
27,200
$
5,000
6,000
$58,700
7,300
18,300
$40,800
(17,100)
$19,000
(7,000)
$11,300
23,700
12,000
$5,200
5,700
47,000
10,900
$134,900
P4-6
(concluded)
Liabilities
Current Liabilities:
Accounts payable.................................................................
Wages payable.....................................................................
Current taxes payable..........................................................
Total current liabilities...................................................
Long-Term Liabilities:
Bonds payable.....................................................................
Less: Discount on bonds payable.........................................
Total Liabilities.........................................................................
$13,000
3,000
9,600
$46,000
(3,900)
Shareholders Equity
Contributed Capital:
Preferred stock, $50 par.....................................................
$15,000
Common stock, $2 par.......................................................
8,000
Additional paid-in capital on preferred stock......................
5,100
Additional paid-in capital on common stock.........................
23,200
Total contributed capital...............................................
Retained earnings....................................................................
Accumulated Other Comprehensive Income:
Unrealized increase in value of available-for-sale securities
1,300
Total contributed capital, retained earnings, and accumulated
other comprehensive income........................................
Less: Treasury stock (at cost).............................................
Total Shareholders Equity........................................................
Total Liabilities and Shareholders Equity.................................
$25,600
42,100
$ 67,700
$51,300
16,000
$68,600
(1,400)
$ 67,200
$134,900