Intermediate Accounting, 10 Ed
Intermediate Accounting, 10 Ed
10th Edition
ISBN: 9781260310177
Author: Mark W. Nelson, Wayne B. Thomas J. David Spiceland
Publisher: McGraw-Hill Education
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Chapter 3, Problem 3.3E
To determine

Balance sheet:

This financial statement reports the assets and liabilities of the company to know the financial position of the company. The main elements of the balance sheet are assets, liabilities, and stockholders’ equity.

To Classify: The following items in the appropriate category.

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Planning Wizards, LLC is an event-planning company. Which of the following would be included in the current asset section of a classified balance sheet dated December 31, 2019? a. 15-month certificate of deposit b. Customer advances on New Year's parties c. Last month rent payment (lease expires in 2021) d. Investment in stocks, to be sold in 2020 e. Income tax refund receivable f. Inventory Select one: d, e, and f e and f a, b, c, e, and f a, b, c, d, e, and f b, e, f
For each of the following situations, indicate the effect on assets, net income, andretained earnings at December 31, 2020 and 2021 as follows:• O if the financial statement element is overstated.• U if the financial statement element is understated.• NE if there is no effect on the financial statements.Provide a brief explanation.Note: please present in a table form A machine with a 15-year useful life was expensed when purchased in 2020.e) Did not accrue interest expense on a note payable at Dec 31 2020. Interestexpensed when paid in 2021.
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Intermediate Accounting, 10 Ed

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