Financial Accounting for decision making
Chapter 3 Homework
3-2. Are the following balance sheet items (A) assets, (L) liabilities, or (E) stockholders’ equity?
A:
Assests
Liabilities
Stockholder’s equity:
c: Investments in stock d: Cash e: Land f: Inventory h: Marketable securities i: Patents m: Taxes payable p: Prepaid expenses q: Goodwill r: Tools s: Buildings a: Cash dividends payable b: Mortgage notes payable g: Unearned rent n: Account payable. o: Organizational costs j: Capital stock k: Retained earnings. l: Accounts receivable
3-4: Usually current assets are listed in specific order, starting with cash. What is the objective of this order of listing?
A: The objective of this order of listing is the ability with which they…show more content… 855
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current Liabilities:
Accounts payable
$
77,916
Accrued expenses
23,952 Unearned transportation revenue
6,808 Current installments of long-term debt
36,875
Total current liabilities
$
145,551
Long-term debt, less current portion
393,808
Deferred income taxes
42,070
Stockholders’ equity:
Common stock (par $0.50)
$
7,152
Capital in excess of par
