Question

Exercise 5.5 mortgage probably don't exist

JEET - AND CASH FLOW STATEMENT Parts BALANCE SHEET value they are reported at Patents ined earnings, January 1, 2018 liquid current assets? statement of financial ral and administrative expenses Interest expense General and administra Dividends declared 100,000 290.500 17.000 150,000 29.000 nancial position on in- 5,000 balances at July 31, 2019, 200.000 450,000 2. Explain each current asset category and discussed what value they ar on the balance sheet day? 3. What is the most liquid current asset and what is the least liquid curre 4. What is the difference between the balance sheet and the statemen position? 5. Find the example of balance sheet and the statement of financial positie ternet and comment your findings. Dereira Corp, 's trial balance shows the following account balances at July Accounts receivable (net) Trading securities 12,000 Accumulated depreciation on equipment and furniture 24,000 Cash 21,000 19,600 Equipment 35,400 Patent 7,400 Prepaid expenses 2,800 Land held for future business site 28,000 $35,600 lowance for doubtful accounts Notes payable (maturity 7/1/19) Machinery and equipment Accounts payable Common stock Additional paid in capital Teasury stock, 10,000 shares at cost €2 Net income 60,000 70,000 30,000 20,000 300,000 Inventory Instructions: 1. Prepare Prepare a structured balance sheet using Excel. Prepare a retained earnings statement using Excel. Exercise 5.6 Current Assets Classification The following trial balance of Comenius Universe Corp. at December 31, 2018 has been properly adjusted except for the income tax expense adjustment. Comenius Universe, Inc. Trial Balance December 31, 2018 Dr. €286,500 873,750 621,250 3,785,000 Exercise 5.5 Balance Sheet and Retained Earnings Statement Preparation Lione Corporation's capital structure consists of 70,000 shares of common stock issued, el par, (authorized 200,000 shares). At December 31, 2018 an analysis of the accounts and discussions with company officials revealed the following information: Sales €1,100,000 Purchase discounts 18,000 Purchases 642,000 Earthquake loss (net of tax) (extraordinary item) 42,000 Selling expenses 128,000 Prepaid expenses 10,000 Marketable securities 20,000 Investments 100,000 Cash 60,000 Accounts receivable 90,000 Mortgage payable Accumulated depreciation Dividend revenue Inventory, January 1, 2018 152,000 Inventory, December 31, 2018 Unearned service revenue Bonds payable Accrued interest payable Land 370,000 142 Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Accounts payable and accrued liabilities Income taxes payable Deferred income tax liability Common stock Additional paid-in capital Retained earnings, 1/1/8 Net sales and other revenues Costs and expenses Income tax expenses €850,500 327,500 42,500 1,175,000 1,840,000 1,725,000 180,000 8,000 6,680,000 125,000 4,400 20,000 1,000 5,590,000 1.484.000 €12,640,500 €12.640.500 143

Answer 1

Balance Sheet At December 31, 2018 Liabilities and Stockholder's equity Assets Current assets Liabilities € 60,000 Current Liabilities cash accounts payable € 90,000 € -5,000 accounts payable € 60,000 € 85,000 € 125,000 € 20,000 € 10,000 unearned service revenue less: allowance for doubtful debts € 4,400 € 1,000 € 200,000 € 265,400 accrued interest payable inventory marketable securities notes Payable prepaid expenses total current Liabilities total current assets long term Liabilities € 300,000 mortgage payable bonds payable (balancing figure) € 213,600 € 20,000 € 233,600 Long term assets € 100,000 € 100,000 patents investments total long term Liabilities machinery and equipment less: accumulated depreciation € 450,000 € 499,000 tota Liabilities stockholders'equity € 270,000 € 370,000 € 840,000 € -180,000 € 70,000 € 30,000 € 561,000 € -20,000 € 641,000 € 1,140,000 land common stock additional paid in capital total long term assets retained earnings treasury stock total assets € 1,140,000 statement of retained earnings 2 for the year ended December 31, 2018 € 290,000 € 300,000 € -29,000 € 561,000 retained earnings, January 1, 2018 add: net income less: dividends declared retained earnings, December 31, 2018

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