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PROBLEM 3: EXERCISE 1. The trial balance of Evening Co. as of December 31, 20x1 is shown below: Debits 120,000 980,000 2,000,000 Credits Cash on hand Cash in bank Accounts receivable Allowance for doubtful accounts Advances to employees Advances to officers (due in 20x3) Advances to affiliates (no agreed due date) Inventories 300,000 40,000 130,000 670,000 200,000 Dairy cattle (used to produce milk) Advances to suppliers Fair value of plan assets Land (held for long term capital appreciation) 900,000 Land (office building site) Building 1,200,000 30,000 1,000,000 1,200,000 4,800,000 Chapter 42 1,600,000 Accumulated depreciation - Bldg. 440,000 Patent 80,000 Accumulated amortization - Patent 250,000 Web site costs Accumulated amortization - Web site Accounts payable Utility payables Loans payable (short-term bank loan) Discount on loan payable Provision for probable loss on lawsuit Deposit liability for returnable containers (short-term) Present value of defined benefit obligation Ordinary share capital Share premium Share premium - Share warrants outstanding Share premium - Treasury shares Retained earnings Reserves for contingencies Translation gain on foreign operation Treasury shares Totals 50,000 720,000 80,00 2,500,000 740,000 430,000 120,000 2,700,000 4,000,000 600,000 300,000 70,000 1,030,000 190,000 30,000 100,000 14,800,000 14.800,000 Requirements: a. Prepare the statement of financial position of Evening Ca. Make a proper heading for the financial statement. Observe compliance with the general feature of "materiality and aggregation." b. Prepare notes showing the breakdown of line items in the financial statement. Make proper cross-referencing of thoe notes; use "Note 6" as your first cross-reference.

PROBLEM 3: EXERCISE 1. The trial balance of Evening Co. as of December 31, 20x1 is shown below: Debits 120,000 980,000 2,000,000 Credits Cash on hand Cash in bank Accounts receivable Allowance for doubtful accounts Advances to employees Advances to officers (due in 20x3) Advances to affiliates (no agreed due date) Inventories 300,000 40,000 130,000 670,000 200,000 Dairy cattle (used to produce milk) Advances to suppliers Fair value of plan assets Land (held for long term capital appreciation) 900,000 Land (office building site) Building 1,200,000 30,000 1,000,000 1,200,000 4,800,000 Chapter 42 1,600,000 Accumulated depreciation - Bldg. 440,000 Patent 80,000 Accumulated amortization - Patent 250,000 Web site costs Accumulated amortization - Web site Accounts payable Utility payables Loans payable (short-term bank loan) Discount on loan payable Provision for probable loss on lawsuit Deposit liability for returnable containers (short-term) Present value of defined benefit obligation Ordinary share capital Share premium Share premium - Share warrants outstanding Share premium - Treasury shares Retained earnings Reserves for contingencies Translation gain on foreign operation Treasury shares Totals 50,000 720,000 80,00 2,500,000 740,000 430,000 120,000 2,700,000 4,000,000 600,000 300,000 70,000 1,030,000 190,000 30,000 100,000 14,800,000 14.800,000 Requirements: a. Prepare the statement of financial position of Evening Ca. Make a proper heading for the financial statement. Observe compliance with the general feature of "materiality and aggregation." b. Prepare notes showing the breakdown of line items in the financial statement. Make proper cross-referencing of thoe notes; use "Note 6" as your first cross-reference.

Financial Accounting: The Impact on Decision Makers
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
Chapter6: Cash And Internal Control
Section: Chapter Questions
Problem 6.3E
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PROBLEM 3: EXERCISE 1. The trial balance of Evening Co. as of December 31, 20x1 is shown below: Debits Credits Cash on hand Cash in bank Accounts receivable Allowance for doubtful accounts Advances to employees Advances to officers (due in 20x3) Advances to affiliates (no agreed due date) 120.000 980,000 2,000,000 300,000 40,000 130,000 670,000 200,000 Inventories Dairy cattle (used to produce milk) Advances to suppliers Fair value of plan assets 1,200,000 30,000 1,000,000 Land (held for long term capital appreciation) 900,000 Land (office building site) Building 1,200,000 4,800,000 Chapter1 42 1,600,000 Accumulated depreciation - Bldg. 440,000 Patent Accumulated amortization - Patent 80,000 250,000 Web site costs 50,000 720,000 80,000 2,500,000 Accumulated amortization - Web site Accounts payable Utility payables Loans payable (short-term bank loan) Discount on loan payable Provision for probable loss on lawsuit Deposit liability for returnable containers (short-term) Present value of defined benefit obligation Ordinary share capital Share premium Share premium - Share warrants outstanding Share premium - Treasury shares Retained earnings Reserves for contingencies Translation gain on foreign operation Treasury shares 740,000 430,000 120,000 2,700,000 4,000,000 600,000 300,000 70,000 1,030,000 190,000 30,000 100,000 14,800,000 14,800,000 Totals Requirements: a. Prepare the statement of financial position of Evening Ca Make a proper heading for the financial statement. Observe| compliance with the general feature of "materiality and aggregation." b. Prepare notes showing the breakdown of line items in the financial statement. Make proper cross-referencing of those notes; use "Note 6" as your first cross-reference.
Transcribed Image Text:PROBLEM 3: EXERCISE 1. The trial balance of Evening Co. as of December 31, 20x1 is shown below: Debits Credits Cash on hand Cash in bank Accounts receivable Allowance for doubtful accounts Advances to employees Advances to officers (due in 20x3) Advances to affiliates (no agreed due date) 120.000 980,000 2,000,000 300,000 40,000 130,000 670,000 200,000 Inventories Dairy cattle (used to produce milk) Advances to suppliers Fair value of plan assets 1,200,000 30,000 1,000,000 Land (held for long term capital appreciation) 900,000 Land (office building site) Building 1,200,000 4,800,000 Chapter1 42 1,600,000 Accumulated depreciation - Bldg. 440,000 Patent Accumulated amortization - Patent 80,000 250,000 Web site costs 50,000 720,000 80,000 2,500,000 Accumulated amortization - Web site Accounts payable Utility payables Loans payable (short-term bank loan) Discount on loan payable Provision for probable loss on lawsuit Deposit liability for returnable containers (short-term) Present value of defined benefit obligation Ordinary share capital Share premium Share premium - Share warrants outstanding Share premium - Treasury shares Retained earnings Reserves for contingencies Translation gain on foreign operation Treasury shares 740,000 430,000 120,000 2,700,000 4,000,000 600,000 300,000 70,000 1,030,000 190,000 30,000 100,000 14,800,000 14,800,000 Totals Requirements: a. Prepare the statement of financial position of Evening Ca Make a proper heading for the financial statement. Observe| compliance with the general feature of "materiality and aggregation." b. Prepare notes showing the breakdown of line items in the financial statement. Make proper cross-referencing of those notes; use "Note 6" as your first cross-reference.
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