Question

c. partnership d. governmental unit 58. Accumulated Depreciation appears on the a. balance sheet in the current assets section b. balance sheet in the property, plant, and equipment section c. balance sheet in the long-term liabilities section d. income statement as an operating expense 59. The first item appearing on the statement of owner's equity is a. net income b. the ending balance of owner's equity c. owner withdrawals d. the beginning balance of owner's equity What 60. In the chart of accounts, the balance sheet accounts are normally listed in which order? a. liabilities, assets, owner's equity b. assets, liabilities, owner's equity c. owner's equity, assets, liabilities d. assets, owner's equity, liabilities d. in The assets and liabilities of Thompson Computer Services at March 31. the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, the beginning of the current year. Mr. Thompson invested an additional S25,000 in the business during the year. "hed - der can is th Accounts payable Accounts receivable Cash Fees earned Land Building $ 2,000 10,340 21,420 73,450 47,000 157,630 Miscellaneous expense Office expense Supplies Wages expense Drawing $ 1.030 1,240 1,670 23,550 16,570 thc ist 61. Prepare a balance sheet for Thompson Computer Services for the current year ended March 31. 62. Match the following items to the financial statement where they can be found. (Hint: Some of the items can be found on more than one financial statement.) A. Balance sheet B. Income statement C. Statement of cash flows D. Statement of owner's equity 1. 2. Item Withdrawals Revenues Supplies 3. Pag

Answer 1

Answer to Q#58 (First question in the requested list): Option-(b): balance sheet in the property, plant and equipment section. Reason: Balance sheet explains financial position of the company as at last day of the reporting period in terms of net assets held & net liabilities owed by the company. Difference between total net assets and total net liabilities is the networth of the company. Net worth of the company is technically termed as stockholders' equity wherein data related to amount & class of equity capital contributed to the company, retained earnings till the last day of reporting period, reduced by treasury stock held, if any will be reported. Assets will be classified as current assets and non-current assets. If assets' life time is estimated to be one year or less from the last day of reporting period, they are current assets, otherwise, they are non-current assets. Similarly, if liabilities are payable within one year from the last day of reporting period, they are current liabilities, otherwise, they are long-term liabilities. Non-current assets include property, plant and equipment section on the balance sheet that reports amount of long-term assets the firm owns such as land, buildings, equipment, etc. All these assets except land will be depreciated over its economic life as they tend to depreciate year-by-year due to its usage. These costs are reported at cost to show gross value first and then depreciation charged till date of balance sheet shall be deducted from assets' gross value using a contra asset account named 'Accumulated Depreciation' account. It is called contra asset because accumulated depreciation account will be reported as a negative figure under property, plant and equipment section on firm's balance sheet. Therefore, option-(b) is the correct answer.