Problem 2-2. Nature of financial instruments. (LO a)Refer to the list below:1. Cash in bank.2. Accounts receivables.14. Accounts payable.15. Estimated warranty obligations.16. Income tax payable.17. Unearned rent revenue.18. Interest rate swap payable.19. Bonds payable.3. Merchandise inventories.4. Prepaid rent.5. Equity investment – held for trading.6. Equity investment – associate.7. Debt investment – amortized cost.8. Investment in subsidiary.9. Forward contract receivable.10. Gold bullion.20. Deferred tax liabilities.21. Issued ordinary shares.22. Redeemable preference shares.23. Share warrants outstanding.11. Biological asset.12. Property, plant, and equipment13. Intangible asset.24. Treasury shares.25. Share appreciation rights payable.Requirement:For each of the items above, identify whether an item is a financial asset (FA), non-financial asset (NFA), financialliability (FL), non-financial liability (NFL), or equity instrument (E).

Financial statements items Financial Assets Cash in bank Account Receivable Merchandise…

Answered: 1. Cash in bank. 14. Accounts payable.…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter1: Accounting And The Financial Statements

Section: Chapter Questions

Problem 28BE: Brief 1-28 Statement of Cash Flows Listed are items that would on a Statement of cash flows. Cash...

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Brief 1-28 Statement of Cash Flows Listed are items that would on a Statement of cash flows. Cash received from customers Cash paid for dividends Cash received from a bank loan Cash paid to suppliers Cash paid to purchase Required: Indicate in which part of the statement of cash flows each of the items would appear: operating activities (O), investing activities (I), or financing activities (F).
1.1 A loan repayment to a bank would be recorded in the nominal ledger as: a) Dr Bank Cr Capital b) Dr Loan Cr Bank c) Dr Loan Cr Bank d) Dr Bank Cr Reserves
1. Which of the following is not a financial instrument? a. accounts receivable b. accrued utilities payable c. cash d. advances to suppliers 2. Which of the following is not a financial asset? a. investment in bonds b. investment in held for trading securities c. prepaid income tax d. interest receivable 3. Which of the following is a financial liability? a. income tax payable b. unearned revenue c. warranty obligation d. lease liability
QUESTION 8 Classify the following items into assets, liabilities, or owner’s equity. a. Office equipment ______ b. Freehold premises _______ c. Capital _________ d. Mortgage on buildings____ e. Debtors _____ f. Short-term loan _________ g. Long-term loan ________ h. Drawings _________ i. Bank ____________ j. Bank overdraft ________ k. Creditors __________ l. Net profit _____
1. which of the following transactions will result in the increase and decrease in liability? a. payment of loan by installmentb. borrowed money from the bankc. issued a promissory note in payment of a liabilityd. request for an extension of the date of payment 2. a statement which shows where the money of the business is obtained and used? a. statement of financial positionb. statement of cash flowsc. cash budgetd. statement of revenues and expenses
2. Which of the following on a Balance Sheet would cause concern for you? Use the sample Balance Sheet provided Notes & Comments Current Assets 10350 Bank Chequing $75,992 10857 Visa Credit Card -$226 12000 Accounts Receivable $21,296 13500 Inventory Assets $27,791 14990 Hold Backs -$275 Total Current Assets $124,578 Liabilities & Equity 20000 Accounts Payable $22,063 22100 Unapplied Cash $8,716 29300 Shareholder Loan $24,410 35600 Retained Earnings $52,416 Net Icome (Current Year) $16,873 Total Liabilities & Equity $124,478
Ay 3. Commercial Banks and their financial statements with Off-balance sheet activities.
1. 1- An income statement is one of the three (along with balance sheet and statement of cash flows) major financial statements that reports a company's financial performance over a specific accounting period. Distinguish the differences between single-step and multiple-step income statement? 2- A certificate of deposits is a savings account to which you deposit your money for a fixed amount of time, be it one month or five years and a money market account combines the features of savings and checking accounts. Which one will you prefer and why?
1. Prepare a trial balance based on the balances of these ledger accounts. Dr Cash A/C Cr Date Particulars Amount Date Particulars Amount 01-Sep To Capital Stock $7,050 02-Sep By Prepaid Rent $3,600 04-Sep To Unearned Fees $3,500 03-Sep By Prepaid Insurance $1,500 06-Sep To Accounts Receivables $800 10-Sep By Advertisement expense $120 17-Sep To Accounts Receivables $2,100 12-Sep By Accounts Payable $800 24-Sep To Fees Earned $1,850 13-Sep By Salary Expenses $400 25-Sep To Accounts Receivables $1,300 18-Sep By Supplies $750 30-Sep To Accounts Receivables $1,050 27-Sep By Salary expense $400…
Problem 2-2. Nature of financial instruments. (LO a) Refer to the list below:1. Cash in bank.2. Accounts receivables.3. Merchandise inventories.4. Prepaid rent.5. Equity investment – held for trading.6. Equity investment – associate.7. Debt investment – amortized cost.8. Investment in subsidiary.9. Forward contract receivable.10. Gold bullion.11. Biological asset.12. Property, plant, and equipment13. Intangible asset.14. Accounts payable.15. Estimated warranty obligations.16. Income tax payable.17. Unearned rent revenue.18. Interest rate swap payable.19. Bonds payable.20. Deferred tax liabilities.21. Issued ordinary shares.22. Redeemable preference shares.23. Share warrants outstanding.24. Treasury shares.25. Share appreciation rights payable. Requirement:For each of the items above, identify whether an item is a financial asset (FA), non-financial asset (NFA), financial liability (FL), non-financial liability (NFL), or equity instrument (E).
2. Record the adjusting entry for interest. 3. Record the receipt of cash by FirstBanc Corporation at maturity.
Complete the table below. Item Classification of item (A, L, OE, R, E) Income Statement (IS) or Balance Sheet (BS) Accounts payable Accounts receivable Capital Cash at bank Depreciation expense Interest revenue Inventory Mortgage payable Motor vehicles Office furniture Rent revenue Sales revenue Share capital Stationery Stationery expense Wages expense Wages payable

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