On December 31, Turner Company had the following list of account balances. ||||0|||0|0 0 Accounts Payable Accounts Receivable Accumulated Depreciation, Buildings Accumulated Depreciation, Equipment Beginning Retained Earnings Buildings Capital Stock Cash Depreciation Expense, Buildings Depreciation Expense, Equipment $ 56700 39400 44300 18200 31500 105000 28500 40900 3000 8900 O Dividends Equipment Prepaid Rent Rent Expense Salaries Expense Salaries Payable Service Revenue Supplies Supplies Expense $ 16900 36300 16300 7500 2700 2800 117200 14600 7700 Required: Prepare a balance sheet on December 31. Hint: You will need to determine the net book value for equipment and buildings. You will also need to determine ending retained earnings

On December 31, Turner Company had the following list of account balances. ||||0|||0|0 0 Accounts Payable Accounts Receivable Accumulated Depreciation, Buildings Accumulated Depreciation, Equipment Beginning Retained Earnings Buildings Capital Stock Cash Depreciation Expense, Buildings Depreciation Expense, Equipment $ 56700 39400 44300 18200 31500 105000 28500 40900 3000 8900 O Dividends Equipment Prepaid Rent Rent Expense Salaries Expense Salaries Payable Service Revenue Supplies Supplies Expense $ 16900 36300 16300 7500 2700 2800 117200 14600 7700 Required: Prepare a balance sheet on December 31. Hint: You will need to determine the net book value for equipment and buildings. You will also need to determine ending retained earnings

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter4: Income Measurement And Accrual Accounting

Section: Chapter Questions

Problem 4.33E

See similar textbooks

Similar questions

Using the following information, A. Make the December 31 adjusting journal entry for depreciation. B. Determine the net book value (NBV) of the asset on December 31. Cost of asset, $195,000 Accumulated depreciation, beginning of year, $26,000 Current year depreciation, $13,000
Adjustment for depreciation The estimated amount of depredation on equipment for the current year is $133,000. a. How is the adjustment recorded? Indicate each account affected, whether the account is increased or decreased, and the amount of the increase or decrease. b. If the adjustment in (a) was omitted, which items would be erroneously stated on (1) the income statement for the year and (2) the balance sheet as of December 31?
Balance Sheet and Notes Listed here in random order are Wicks Construction Limiteds balance sheet accounts and related ending balances as of December 31, 2019: Additional information: 1. The company reports on the balance sheet the total amount for inventories and the net book value of property, plant, and equipment, with the related details for each account disclosed in notes. 2. The straight line method is used to depreciate buildings, machinery, and equipment, based upon their cost and estimated residual values and lives. A breakdown of property, plant, and equipment shows the following: land at a cost of 32,000, buildings at a cost of 182,400 and a net book value of 120,200, machinery at a cost of 63,900, and related accumulated depreciation of 18,600, and equipment (40% depreciated) at a cost of 53,000. 3. Patents are amortized on a straight line basis directly to the Patent account. 4. Inventories are listed at the lower of cost or market value using an average cost. The inventories include raw-materials, 22,200; work in process, 34,700; and finished goods, 41,600. 5. Common stock has a 10 par value per share, 12,000 shares are authorized, and 6,280 shares have been issued. 6. Preferred stock has a 100 par value per share, 1,000 shares are authorized, and 400 shares have been issued. 7. The investment in bonds is carried at the original cost, which is the face value, and is being held to maturity. 8. Short-term investments in marketable securities were purchased at year-end. 9. The bonds payable mature on December 31, 2024. 10. The company attaches a 1-year warranty on all the products it sells. Required: 1. Prepare Wicks Constructions December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare notes to accompany the balance sheet that itemize company accounting policies; inventories; and property, plant, and equipment. 3. Next Level Compute the current ratio and the quick ratio. How do these two ratios provide different information about the companys liquidity? Why are these ratios useful?
Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense at December 31, 2020, if the double-declining-balance method were used? a. $187,200 b. $192,000 c. $195,200 d. $312, 000
Twenty metrics of liquidity, solvency, and profitability The comparative financial statements of Automotive Solutions Inc. are as follows. The market price of Automotive Solutions Inc. common stock was $119.70 on December 31, 20Y8 Instructions Asset turnover
The following items were excerpted from Poeltl, Inc.'s balance sheets: December 31, 2023December 31, 2022Cash$86,300$59,000Accounts receivable65,60070,600Inventory157,000150.300Property and equipment794,500745,400Accumulated depreciation(184,000)(168,200)Accounts payable61,00050,600Wages payable20,40023,000 Poeltl's 2023 income statement showed net income of $463,000, depreciation expense of $57,000, and a gain on disposal of equipment of $16,000. On Poeltl's 2023 statement of cash flows, how much is Net Cash Provided by Operating Activities?
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows:Dec 31 20Y9 Dec 31 20Y8ASSETSCash $ 70,720 $ 47,940Accounts Receivable 207,230 188,190Inventories 298,520 289,850Investments - 102,000Land 295,800 -Equipment 438,600 358,020Accumulated Depreciation-Equipment (99,110) (84,320)Total Assets $ 1,211,760 $ 901,680LIABILITIES AND STOCKHOLDERS' EQUITYAccounts Payable $ 205,700 $ 194,140Accrued Expenses Payable (operating expenses) 30,600 26,860Dividends Payable 25,500 20,400Common Stock, $1 par 202,000 102,000Paid-in Capital; Excess of issue price over par-common stock 354,000 204,000Retained Earnings 393,960 354,280Total Liabilities and Stockholders Equity: $ 1,211,760 $ 901,680Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows:A. Equipment and land were acquired for cashB. There were no disposals of equipment during the year.C. The investments were sold for $91,800 cash.D. The common stock was…
FDN Company shows the following balances on December 31, 2021: Accounts receivable P250,000 Accumulated depreciation P200,000 Allowance for uncollectible accounts P57,000 Cash P200,000 Property, plant and equipment P800,000 Supplies P20,000 How much is the Current Assets in the Statement of Financial Position as of December 31, 2021?
The comparative balance sheet of Yellow Dog Enterprises Inc. at December 31, 20Y8 and 20Y7, is as follows: Please see the attachment for details: Additional data obtained from the income statement and from an examination of the accounts in the ledger for 20Y8 are as follows:a. Net income, $190,000.b. Depreciation reported on the income statement, $115,000.c. Equipment was purchased at a cost of $395,000, and fully depreciated equipment costing $75,000 was discarded, with no salvage realized.d. The mortgage note payable was not due for six years, but the terms permitted earlier payment without penalty.e. 40,000 shares of common stock were issued at $15 for cash.f. Cash dividends declared and paid, $50,000. InstructionsPrepare a statement of cash flows, using the indirect method.
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $292,750 $272,320 Accounts receivable (net) 106,050 97,810 Inventories 299,380 289,590 Investments 0 112,190 Land 153,550 0 Equipment 330,310 256,020 Accumulated depreciation—equipment (77,330) (69,040) Total assets $1,104,710 $958,890 Liabilities and Stockholders' Equity Accounts payable (merchandise creditors) $199,950 $188,900 Accrued expenses payable (operating expenses) 19,880 24,930 Dividends payable 11,050 8,630 Common stock, $10 par 59,650 46,990 Paid-in capital in excess of par—common stock 224,260 130,410 Retained earnings 589,920 559,030 Total liabilities and stockholders’ equity $1,104,710 $958,890 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land…
The comparative balance sheet of Merrick Equipment Co. for December 31, 20Y9 and 20Y8, is as follows: Dec. 31, 20Y9 Dec. 31, 20Y8 Assets Cash $259,510 $239,180 Accounts receivable (net) 94,010 85,900 Inventories 265,380 254,340 Investments 0 98,530 Land 136,120 0 Equipment 292,800 224,860 Accumulated depreciation—equipment (68,550) (60,640) Total assets $979,270 $842,170 Liabilities and Stockholders' Equity Accounts payable $177,250 $165,910 Accrued expenses payable 17,630 21,900 Dividends payable 9,790 7,580 Common stock, $10 par 52,880 41,270 Paid-in capital: Excess of issue price over par-common stock 198,790 114,540 Retained earnings 522,930 490,970 Total liabilities and stockholders’ equity $979,270 $842,170 Additional data obtained from an examination of the accounts in the ledger for 20Y9 are as follows: Equipment and land were acquired for cash. There were…