Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be reported as either assets, liabilities or stockholders’ equity. g) Notes payable of $440,000 is due on 31st January, 2020. h) Neptune restricted 50% of its’ total cash of $330,000 to repay a loan after 2 years. i) Neptune has a claim of $60,000 to be received after 2 months against an insurance company for a causality loss. j) Neptune owns an equipment of $35,000 which is currently unused. Instructions: For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders’ equity. Mention the classification as well.
Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be reported as either assets, liabilities or stockholders’ equity. g) Notes payable of $440,000 is due on 31st January, 2020. h) Neptune restricted 50% of its’ total cash of $330,000 to repay a loan after 2 years. i) Neptune has a claim of $60,000 to be received after 2 months against an insurance company for a causality loss. j) Neptune owns an equipment of $35,000 which is currently unused. Instructions: For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders’ equity. Mention the classification as well.
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
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 9C: Situation You are the assistant accountant for Tyler Corporation. It is mid-January 2020 and you are...
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Neptune Corporation is preparing its December 31, 2018,
g) Notes payable of $440,000 is due on 31st January, 2020.
h) Neptune restricted 50% of its’ total cash of $330,000 to repay a loan after 2 years.
i) Neptune has a claim of $60,000 to be received after 2 months against an insurance company for a causality loss.
j) Neptune owns an equipment of $35,000 which is currently unused.
Instructions:
For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders’ equity. Mention the classification as well.
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