Question

Instructions: 1.Discuss individual elemnts and prepare the proper statement of classified balance sheet. 2.what would the difference beif the company was using perpetual inventory accounting system ?

D CASH FLOW STATEMENT BALANCE SHES XOX Total PPE Intangible assets Tocal intangible assets Total assets Land Land for future plant site Loss from flood Notes payable (due next year) Patent Payroll taxes payable Pension obligations Petty cash Preferred stock Premium on bonds payable Premium on preferred stock Prepaid rent Purchases Purchase returns and allowances Retained eaming Sales Sales discounts Sales salary Trading securities Treasury stock (at cost) Unearned subscriptions revenue Warranty liability Accounts receivable Accrued wages Accumulated depreciation - buildings Accumulated depreciation equipment Advances to employees Advertising expense Allowance for doubtful accounts Bond sinking fund Bonds payable Building Cash in bank Cash on hand Cash surrender value on life insurance Commission expense Common stock Copyright Dividends payable Freight-in Equipment Cash on sale of equipment Interest receivable Inventory - beginning Inventory - ending hilities and stockholders equity Cettent liabilities Total current liabilities Long-term dels SXXX XXX XXX XXX Total long-term liabilities Total liabilities Stockholders' equity 66 SXXX Company Name Balance Sheet December 31, 20xx Assets Current assets S XXX PLETTY CASH XXX CASH IN BANK CASH ON HAND XXX Less: ALLOX4NGE FOR DOUBTFOLA. XXX ACCOUNTS RECEIVABLE PRE MAIA. RENT S XXX XXX xxx Total paid-in capital XXX XXX XXX XXX XXX XXX XXX Total paid-in capital and RE XXX Xxx Total current assets Long-term investments SXXX Total stockholders' equity Total liabilities & SE SXXX XXX Exercise 5.4 Current Assets Classification XXX Total long-term investments Property, plant, and equipment SXXX Instructions: 1. Calculate the amount of the total current assets on the July 31, 2019. SXXX 140

Answer 1

Company Name
Balance Sheet
December 31,20XX
Assets
Petty cash & cash on hand	XXX
Cash at bank	XXX	XXX
Accounts receivable	XXX
Less:Allowance for doudtful accounts	XXX	XXX
Inventory-ending		XXX
Prepaid rent		XXX
Advances to employees		XXX
Interest receivable		XXX
Cash surrender value on life insurance		XXX
Total current assets			$ XXX
Long-term investments
Trading securities		XXX
Bond sinking Fund		XXX
Total Long-term investments			XXX
Property,plant & equipment
Land		XXX
Land for future plant site		XXX
Building	XXX
Less:Accumulated depreciation-buildings	XXX	XXX
Equipment	XXX
Less:Accumulated depreciation-equipment	XXX	XXX
Total PP&E			XXX
Intangible assets
Patent		XXX
Copyright		XXX
Total Intangible assets			XXX
Total assets			XXX
Liabilities and stockholders'equity
Current liabilities
Accrued wages		XXX
Payroll taxes payable		XXX
Unearned subscription revenue		XXX
Warranty liability		XXX
Dividends payable		XXX
Total current liabilities			XXX
Long-term debt
Notes payable(due next year)		XXX
Bonds payable	XXX
Premium on bonds payable	XXX	XXX
Pension obligations		XXX
Total Long-term liabilities			XXX
Total Liabilities			XXX
Stockholders'equity
Preferred stock	XXX
Premium on preferred stock	XXX	XXX
Common stock		XXX
Total paid-in capital		XXX
Retained earnings		XXX
Total paid-in capital & RE		XXX
Less: Treasury stock(at cost)		XXX
Total Stockholders'equity			XXX
Total liabilities & SE			XXX

2.Under perpetual inventory system the balance sheet and income statement are kept continuously updated according to the changes in inventory-- ie. as & when inventory is received, Inventory account is debited & cash/ Accounts Payable is credited.Likewise,as & when inventory is sold, Inventory account is credited and COGS is debited , in order to book the expense relevant to the sale. So,the inventory in the balance sheet reflect the relevant prices, as according to FIFO/LIFO