Answered: Prepare a revised statement of…

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter6: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 31E: The Home Depot reported the following data (in millions) in its recent financial statements: a....

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PREPARE A REVISED STATEMENT OF FINANCIAL POSITION GIVEN THE AVAILABLE INFORMATION. ASSUME THAT THE ACCUMULATED DEPRECIATION BALANCE FOR THE BUILDINGS IS 172000 AND FOR THE EQUIPMENT, 117000. THE ALLOWANCE FOR DOUBTFUL ACCOUNTS HAS A BALANCE OF 29000. THE PENSION LIABILITY IS CONSIDERED A NON-CURRENT LIABILITY. (LIST CURRENT ASSETS IN REVERSE ORDER OF LIQUIDITY. LIST PROPERTY, PLANT, AND EQUIPMENT IN ORDER OF BUILDINGS AND EQUIPMENT. ENTER ACCOUNT NAME ONLY AND DO NOT PROVIDE THE DESCRIPTIVE INFORMATION PROVIDED IN THE QUESTION.)

Current liabilities
Accounts payable
Notes payable (due next year)
Pension liability
Rent payable
Premium on bonds payable
Non-current liabilities
Bonds payable
Equity
Share capital-ordinary, €1.00 par, authorized 400,000 shares, issued 302,000
Share premium-ordinary
Retained earnings
147,000
137,000
94,000
61,000
65,000
512,000
302,000
172,000
?
Prepare a revised statement of financial position given the available information. Assume that the accumulated depreciation balance
for the buildings is €172,000 and for the equipment, €117,000. The allowance for doubtful accounts has a balance of €29,000. The
pension liability is considered a non-current liability. (List Current Assets in reverse order of liquidity. List Property, Plant and Equipment in
order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

Nash SpA has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in
order to obtain additional funds for expansion.
Current assets
Cash
Accounts receivable (net)
Inventory (at lower-of-average-cost-or-net realizable value)
Trading securities-at cost (fair value €132,000)
Property, plant, and equipment
Buildings (net)
Equipment (net)
Land held for future use
Intangible assets
Goodwill
Other identifiable assets
Nash SpA
Statement of Financial Position
December 31, 2022
Prepaid expenses
€242,000
352,000
413,000
152,000
582,000
172,000
187,000
92,000
102,000
24,000

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Preparation of revised statement of Financial position of Nash SpA are as follows

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