Prepare a classified
Explanation of Solution
Classified balance sheet: The main elements of balance sheet assets, liabilities, and
Prepare a classified balance sheet of Company M for the year ended December 31, 2016 as follows:
Company M | ||
Balance Sheet | ||
For Year Ended December 31, 2016 | ||
Assets: | Amount ($) | Amount ($) |
Current Assets: | ||
Cash (1) | 3,300 | |
| 5,000 | |
Inventory (3) | 4,200 | |
Total current assets | 12,500 | |
Property, Plant, and Equipment: | ||
Land (4) | 6,800 | |
Buildings and equipment (5) | 82,800 | |
Less: | (16,000) | |
Total property, plant, and equipment | 73,600 | |
Total Assets | 86,100 | |
Liabilities: | ||
Current Liabilities: | ||
Accounts payable (7) | 3,000 | |
Salaries payable (8) | 1,500 | |
Total current liabilities | 4,500 | |
Long-Term Liabilities: | ||
Bonds payable | 6,000 | |
Less: Discount on bonds payable (9) | (300) | |
Total long-term liabilities | 5,700 | |
Total Liabilities (a) | 10,200 | |
Shareholders’ Equity: | ||
Contributed Capital: | ||
Common stock, $10 par (10) | 16,500 | |
Additional paid-in capital (11) | 12,700 | |
Total contributed capital | 29,200 | |
Retained earnings (12) | 46,700 | |
Total Shareholders’ Equity (b) | 75,900 | |
Total Liabilities and Shareholders’ Equity | 86,100 |
Table (1)
Working note (1):
Compute the amount of cash:
Working note (2):
Compute the amount of accounts receivable:
Working note (3):
Compute the amount of inventory:
Working note (4):
Compute the value of land:
Working note (5):
Compute the value of building and equipment:
Working note (6):
Compute the amount of accumulated depreciation:
Working note (7):
Compute the amount of accounts payable:
Working note (8):
Compute the amount of salaries payable:
Working note (9):
Compute the amount of discount on bonds payable:
Working note (10):
Compute the amount of common stock:
Working note (11):
Compute the amount of additional paid-in capital:
Working note (12):
Compute the amount of retained earnings:
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Chapter 5 Solutions
Intermediate Accounting: Reporting and Analysis
- The comparative balance sheet of Whitman Co. at December 31, 2016 and 2015, is as follows: The noncurrent asset, noncurrent liability, and stockholders equity accounts for 2016 are as follows: Instructions Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities.arrow_forwardComprehensive: Balance Sheet from Statement of Cash Flows Mills Company prepared the following balance sheet at the beginning of 2019: Additional information related to the statement of cash flows: 1. The long-term bonds have a face value of 6,000 and were issued on December 31, 2019. 2. The building was purchased on December 30, 2019. 3. The land was sold at its original cost. 4. The common stock which was sold totaled 300 shares and had a par value of 10 per share. Required: Next Level Prepare a classified balance sheet for Mills as of December 31, 2019. (Hint. Review the information on the statement of cash flows and the balances in the beginning balance sheet accounts to determine the impact on the ending balance sheet accounts.)arrow_forwardDetermining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets presented the following data for equipment: During 2019, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1. Calculate the amount of depreciation expense for 2019. 2. Calculate the amount of cash spent for equipment during 2019. 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.arrow_forward
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