ACCT 209 Lecture Notes - Lecture 1: Deferral, Fixed Asset, Cash Register
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Uhura Company has decided to expand its operations. Thebookkeeper recently completed the balance sheet presented below inorder to obtain additional funds for expansion.
UHURA COMPANY | ||
| Current assets | ||
| Cash | $232,650 | |
| Accounts receivable (net) | 342,650 | |
| Inventory (lower-of-average-cost-or-market) | 403,650 | |
| Equity investments (trading)-at cost (fair value$123,310) | 143,310 | |
| Property, plant, and equipment | ||
| Buildings (net) | 573,310 | |
| Equipment (net) | 163,310 | |
| Land held for future use | 178,310 | |
| Intangible assets | ||
| Goodwill | 82,650 | |
| Cash surrender value of life insurance | 92,650 | |
| Prepaid expenses | 14,650 | |
| Current liabilities | ||
| Accounts payable | 138,310 | |
| Notes payable (due next year) | 127,650 | |
| Pension obligation | 85,310 | |
| Rent payable | 51,650 | |
| Premium on bonds payable | 55,650 | |
| Long-term liabilities | ||
| Bonds payable | 503,310 | |
| Stockholdersâ equity | ||
| Common stock, $1.00 par, authorized 400,000 shares,issued 292,650 | 292,650 | |
| Additional paid-in capital | 162,650 | |
| Retained earnings | ? | |
Prepare a revised balance sheet given the available information.Assume that the accumulated depreciation balance for the buildingsis $162,650 and for the equipment, $107,650. The allowance fordoubtful accounts has a balance of $19,650. The pension obligationis considered a long-term liability.
| Your answer is partially correct. Try again. | |
Presented below is the balance sheet of Sargent Corporation forthe current year, 2014.
SARGENT CORPORATION | ||||||
| Current assets | $ 487,300 | Current liabilities | $ 382,300 | |||
| Investments | 642,300 | Long-term liabilities | 1,002,300 | |||
| Property, plant, and equipment | 1,722,300 | Stockholdersâ equity | 1,772,300 | |||
| Intangible assets | 305,000 | $3,156,900 | ||||
| $3,156,900 | ||||||
The following information is presented.
| 1. | The current assets section includes cash $152,300, accountsreceivable $172,300 less $12,300 for allowance for doubtfulaccounts, inventories $182,300, and unearned rent revenue $7,300.Inventory is stated on the lower-of-FIFO-cost-or-market. | |
| 2. | The investments section includes the cash surrender value of alife insurance contract $42,300; investments in common stock,short-term (trading) $82,300 and long-term (available-for-sale)$272,300; and bond sinking fund $245,400. The cost and fair valueof investments in common stock are the same. | |
| 3. | Property, plant, and equipment includes buildings $1,042,300less accumulated depreciation $362,300; equipment $452,300 lessaccumulated depreciation $182,300; land $502,300; and land held forfuture use $270,000. | |
| 4. | Intangible assets include a franchise $167,300; goodwill$102,300; and discount on bonds payable $35,400. | |
| 5. | Current liabilities include accounts payable $142,300; notespayable-short-term $82,300 and long-term $122,300; and income taxespayable $35,400. | |
| 6. | Long-term liabilities are composed solely of 8% bonds payabledue 2022. | |
| 7. | Stockholdersâ equity has preferred stock, no par value,authorized 200,000 shares, issued 72,300 shares for $433,800; andcommon stock, $1.00 par value, authorized 400,000 shares, issued102,300 shares at an average price of $10. In addition, thecorporation has retained earnings of $315,500. |
Prepare a balance sheet in good form, adjusting the amounts in eachbalance sheet classification as affected by the information givenabove. (List Current Assets in order of liquidity. ListProperty, Plant and Equipment in order of Land, Building andEquipment. Enter account name only and do not provide thedescriptive information provided in thequestion.)
Presented below is the balance sheet of Sargent Corporation forthe current year, 2014.
SARGENT CORPORATION | ||||||
| Current assets | $ 488,120 | Current liabilities | $ 383,120 | |||
| Investments | 643,120 | Long-term liabilities | 1,003,120 | |||
| Property, plant, and equipment | 1,723,120 | Stockholdersâ equity | 1,773,120 | |||
| Intangible assets | 305,000 | $3,159,360 | ||||
| $3,159,360 | ||||||
The following information is presented.
| 1. | The current assets section includes cash $153,120, accountsreceivable $173,120 less $13,120 for allowance for doubtfulaccounts, inventories $183,120, and unearned rent revenue $8,120.Inventory is stated on the lower-of-FIFO-cost-or-market. | |
| 2. | The investments section includes the cash surrender value of alife insurance contract $43,120; investments in common stock,short-term (trading) $83,120 and long-term (available-for-sale)$273,120; and bond sinking fund $243,760. The cost and fair valueof investments in common stock are the same. | |
| 3. | Property, plant, and equipment includes buildings $1,043,120less accumulated depreciation $363,120; equipment $453,120 lessaccumulated depreciation $183,120; land $503,120; and land held forfuture use $270,000. | |
| 4. | Intangible assets include a franchise $168,120; goodwill$103,120; and discount on bonds payable $33,760. | |
| 5. | Current liabilities include accounts payable $143,120; notespayable-short-term $83,120 and long-term $123,120; and income taxespayable $33,760. | |
| 6. | Long-term liabilities are composed solely of 8% bonds payabledue 2022. | |
| 7. | Stockholdersâ equity has preferred stock, no par value,authorized 200,000 shares, issued 73,120 shares for $438,720; andcommon stock, $1.00 par value, authorized 400,000 shares, issued103,120 shares at an average price of $10. In addition, thecorporation has retained earnings of $303,200. |
Prepare a balance sheet in good form, adjusting the amounts in eachbalance sheet classification as affected by the information givenabove. (List Current Assets in order of liquidity. ListProperty, Plant and Equipment in order of Land, Building andEquipment. Enter account name only and do not provide thedescriptive information provided in thequestion.)
