10. Grebe Inc. had the following as at December 31, 2020: $112,000 $992,000 $2,000 $48,000 $666,000 $750,000 Cash balances in the cash registers at its retail outlets Accounts reccivable (net of doubtful accounts) Petty cash balances in head office Chequing account at the Bank of Toyland Accounts payable Inventory of goods for resale (at the lower of cost of market valuc) Term deposits with Investor's Trust Land (at cost) Building (at cost) Accumulated depreciation on building Mortgage owcd to Property Trust Inc. Bank loan (repayable on demand) Utility deposit with City Hydro Utility cxpense owed to City Hydro Rent paid in advance Shares in Dow Chemical Inc. $500,000 $500,000 $400,000 $50,000 $225,000 $245,000 $2,000 $8,000 $5,000 $200,000 (at cost; market valuc at 31/12/2020: $250,000) Plant & cquipment (at cost) Accumulated depreciation on plant Intangible assets (at cost) $750,000 $200,000 $235,000 Required (a) Show how these items would be reported in the current assets sec- tion of the balance sheet for December 31, 2020. (b) Show how these items would be reported in the long-term assets section of the balance sheet for December 31, 2020. (c) What is the total asset value on the balance sheet as at December 31, 2020? (d) Do you think that the total asset value on the balance sheet is a fair representation of the value of the assets? Explain where you think it is not fair and why.
10. Grebe Inc. had the following as at December 31, 2020: $112,000 $992,000 $2,000 $48,000 $666,000 $750,000 Cash balances in the cash registers at its retail outlets Accounts reccivable (net of doubtful accounts) Petty cash balances in head office Chequing account at the Bank of Toyland Accounts payable Inventory of goods for resale (at the lower of cost of market valuc) Term deposits with Investor's Trust Land (at cost) Building (at cost) Accumulated depreciation on building Mortgage owcd to Property Trust Inc. Bank loan (repayable on demand) Utility deposit with City Hydro Utility cxpense owed to City Hydro Rent paid in advance Shares in Dow Chemical Inc. $500,000 $500,000 $400,000 $50,000 $225,000 $245,000 $2,000 $8,000 $5,000 $200,000 (at cost; market valuc at 31/12/2020: $250,000) Plant & cquipment (at cost) Accumulated depreciation on plant Intangible assets (at cost) $750,000 $200,000 $235,000 Required (a) Show how these items would be reported in the current assets sec- tion of the balance sheet for December 31, 2020. (b) Show how these items would be reported in the long-term assets section of the balance sheet for December 31, 2020. (c) What is the total asset value on the balance sheet as at December 31, 2020? (d) Do you think that the total asset value on the balance sheet is a fair representation of the value of the assets? Explain where you think it is not fair and why.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 15P: Comprehensive Receivables Problem Blackmon Corporations December 31, 2018, balance sheet disclosed...
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