Prepare a Balance Sheet similar to the one demonstrated in Chapter 2. Not all accounts listed may be used in the correct solution to this problem You must solve for Retained Earnings Cash Revenue Accounts Receivable Supply Inventory Supply Expense Accounts Payable Current portion of long term debt Fixed Assets Insurance reserves Long Term debt Accrued Liabilities Payroll Expense Retained Earnings $50,000,000.00 $12,000,000.00 $11,000,000.00 $13,000,000.00 $32,000,000.00 $10,200,000.00 $11,100,000.00 $85,000,000.00 $20,000,000.00 $25,000,000.00 $14,000,000.00 $32,900,000.00 ????????

Prepare a Balance Sheet similar to the one demonstrated in Chapter 2. Not all accounts listed may be used in the correct solution to this problem You must solve for Retained Earnings Cash Revenue Accounts Receivable Supply Inventory Supply Expense Accounts Payable Current portion of long term debt Fixed Assets Insurance reserves Long Term debt Accrued Liabilities Payroll Expense Retained Earnings $50,000,000.00 $12,000,000.00 $11,000,000.00 $13,000,000.00 $32,000,000.00 $10,200,000.00 $11,100,000.00 $85,000,000.00 $20,000,000.00 $25,000,000.00 $14,000,000.00 $32,900,000.00 ????????

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Match the following terms or phrases in (a–g) with the explanations in 1–8. Terms or phrases may be used more than once. Question 11 options: Current assets/Current liabilities Probable likelihood and estimable liability Measures the “instant” debt-paying ability of a company Current assets – Current liabilities (Cash + Temporary investments + Accounts receivable)/Current liabilities Cash + Temporary investments + Accounts receivable Probable likelihood of a liability but cannot be estimated Remote contingent liability Reasonably possible likelihood of a liability 1. Current ratio 2. Working capital 3. Quick assets 4. Quick ratio 5. Record an accrual and disclose in the notes to the financial statements 6. Disclose only in notes to financial statements 7. No disclosure needed in notes to financial statements
6. RequiredState whether each item is reported:1. in the statement of financial position2. in profit or loss in the statement of profit or loss and other comprehensive income3. as other comprehensive income in the statement of profit or loss and other comprehensive income4. in the statement of changes in equity5. in the notes to the financial statements.Item How item shown in financial statements(a) loss on revaluation of availablefor-sale investments(b) finance expenses(c) aggregate dividends declared and paid during the year(d) revaluation loss on building (not reversing any previous revaluation)(e) allowance for doubtful debts(f) transfer from retained earnings to general reserve(g) contractual commitments under an operating lease(h) deferred tax liability
. RequiredState whether each item is reported:1. in the statement of financial position2. in profit or loss in the statement of profit or loss and other comprehensive income3. as other comprehensive income in the statement of profit or loss and other comprehensive income4. in the statement of changes in equity5. in the notes to the financial statements.Item How item is reported in financial statements(a) contingent liabilities(b) the effect on retained earnings of the correction of a prior period error(c) cash and cash equivalents(d) capital contributed during the year(e) revaluation gain on land (not reversing any previous revaluation)(f) judgements that management has made in classifying financial assets(g) income tax expense(h) Provisions
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