The following are categories of accounts reported in the financial statements:
Indicate where each of the following accounts would be reported (classified) in the financial statement categories noted above (categories may be used more than once or not at all). Identify only one category for each account listed below.
___G___Accrued Liabilities ________Accumulated Depreciation
_______Rental Income ________Intangible Property
_______Wages Expense ________Unearned Subscription Revenues
_______Bonds Payable ___E___Retained Earnings
2.
_____i. What is total Stockholders’ Equity based on the following account balances?
Paid in Capital:
Common Stock |
$955,000 |
Paid-in-Capital in excess of par |
10,250,000 |
Retained Earnings |
21,077,000 |
Other Comprehensive Income |
62,000 |
Treasury Stock |
68,000 |
Assume bonds were issued during the month of December.
When comparing the balance sheet for November 30 to December 31: if Total Assets increased by $325,000 and Total Liabilities increased by $178,000, then the change in Stockholders’ Equity would be _____________. (Identify amount and if it is an increase or decrease)
Which of the following is a current asset?
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_____ 6. The Notes to the financial statements indicate the types of sales included in the receivables accounts along with the uncollectible amounts balance (Allowance for Doubtful Accounts).
Lower of cost or net realizable value (LCNRV)
Ans.: Category of Account-
1. Accrued liabilities-Category "C"; i.e. Current Liabilities
2. Accumulated Depreciation-Category "B"; i.e. Non-Current Assets
3. Rental Income-Category "F"; i.e.Revenue.
4. Intangible Property-Category "B"; i.e. Non-Current Assets
5. Wages Expense-Category "G"; i.e.Expense
6. Unearned Subscription Revenue-Category "C"; i.e. Current Liabilities
7. Bonds Payable-Category "D"; i.e. Non-Current Liabilities
8. Retained Earning-Category "E"; i.e. Stockholder's Equity
Ans: Total Stockholder's Equity:
Common Stock | $955000 |
Add: Paid in Capital in excess of par | $10250000 |
Retained Earning | $21077000 |
Other Comprehensive Income | $62000 |
Treasury Stock | $68000 |
Total Stockholder's Equity | $32412000 |
Total Stockholder's Equity= Total Assets-Total Liabilities
So, Total Stockholder's Equity will increase by $147000;i.e. ($325000-$178000).
Ans.: Prepaid Insurance is a Current Assets.
Ans.: The Valuation method for receivable is called "Net Realizable value"
The following are categories of accounts reported in the financial statements: Current Assets  
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