FINANCIAL ACCOUNTING:TOOLS FOR BUSINESS
19th Edition
ISBN: 9781119493624
Author: Kimmel
Publisher: WILEY
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Students have asked these similar questions
The following are the typical classifications used in a balance sheet:
a.
Current assets
f.
Current liabilities
b.
Investments
g.
Long-term liabilities
c.
Property, plant, and equipment
h.
Paid-in capital
d.
Intangible assets
i.
Retained earnings
e.
Other assets
Required:For each of the following 2021 balance sheet items, use the letters above to indicate the appropriate classification category. (If the item is a contra account, select the appropriate letter with a minus sign.)
Interest Payable __
Franchise __
Accumulated Depreciation __
Prepaid Insurance (for 2022) __
Bonds Payable (due in 10 years) __
Current Maturities of Long-Term Debt __
Notes Payable (due in 3 months) __
Long-Term Receivables __
Restricted Cash (which will be used to retire bonds in 10 years) __
Supplies __
Machinery __
Land (used in operations) __
Deferred Revenue (for 2022) __
Copyrights __
Common Stock __
Land (held for speculation) __
Cash equivalents __
Salaries Payable __
for each of the financial statement items, identify the estimate(s) from the following (1-11) list that are
required in the measurement of that item on the financial statements. For each select 3 of them.
Account Receivable
A.
b,
C,
• Inventory
A.
b,
C,
Equipment
A.
b,
C,
Warranty Liability
A.
b,
C,
Sales revenue
А,
b,
C,
Revenue from long term contract
b,
A.
Cost of good sold.
C,
A.
C,
1. Cost to repair or replace product.
2. Cost of each item sold/held.
3. Customer default rate
4. Degree of progress fulfilling contract.
5. Pattern of benefit obtained.
6. Prices of inventory items
7. Profitability of contract
8. Rate of defect
9. Residual value at end of useful life
10. Speed of collection
11. Useful lives
. RequiredState whether each item is reported:1. in the statement of financial position2. in profit or loss in the statement of profit or loss and other comprehensive income3. as other comprehensive income in the statement of profit or loss and other comprehensive income4. in the statement of changes in equity5. in the notes to the financial statements.Item How item is reported in financial statements(a) contingent liabilities(b) the effect on retained earnings of the correction of a prior period error(c) cash and cash equivalents(d) capital contributed during the year(e) revaluation gain on land (not reversing any previous revaluation)(f) judgements that management has made in classifying financial assets(g) income tax expense(h) Provisions
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Similar questions
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- Financial statement items Identify each of the following items as (a) an asset, (h) a liability, (c) revenue, (d) an expense, or (e) a dividend:arrow_forwardIndicate the financial statement on which each of the following items appears. Use I for income statement, E for statement of retained earnings and B for Balance Sheetarrow_forwardFor each ofthe following accounts, identify whether that item is an asset, liability, or equity account.a. Bonds payableb. Equipmentc. Accounts payabled. Salaries payablee. Common stockf. Retained earningsg. Cashh. Accounts receivablei. Sales revenuej. Inventoryarrow_forward
- 6. RequiredState whether each item is reported:1. in the statement of financial position2. in profit or loss in the statement of profit or loss and other comprehensive income3. as other comprehensive income in the statement of profit or loss and other comprehensive income4. in the statement of changes in equity5. in the notes to the financial statements.Item How item shown in financial statements(a) loss on revaluation of availablefor-sale investments(b) finance expenses(c) aggregate dividends declared and paid during the year(d) revaluation loss on building (not reversing any previous revaluation)(e) allowance for doubtful debts(f) transfer from retained earnings to general reserve(g) contractual commitments under an operating lease(h) deferred tax liabilityarrow_forwardA) Calculate the total Current Assets, Total Assets, Total Liabilities and Equity, Gross profit, Operating Profit, Earning before Taxes, Taxes and Net Income after Tax on the Balance Sheet and Income statement below (rows highlighted in yellow) B) Calculate the percentage of each line item under Assets to the Total Assets, each line item under Liabilities and Equity to the total Liabilities and Equity, and Cost of Goods Sold, SG&A and Interest Expense to Revenue (blue boxes)arrow_forwardFollowing is a list of balance sheet accounts for Branman Co. as of December 31, 2018. Solve, a. Classify each of the following accounts as an asset, liability, or net worth. b. What is the balance in the Retained Earnings account if the data forms a valid balance sheet?arrow_forward
- ndicate whether the following items would appear on the income statement, balance sheet, or retained earnings statement. a. Service Revenue select a financial statement b. Utilities Expense select a financial statement c. Cash select a financial statement d. Accounts Payable select a financial statement e. Supplies select a financial statement f. Salaries Expense select a financial statement g. Accounts Receivable select a financial statement h. Retained Earnings (ending) select a financial statement…arrow_forwardShow income statement , Retained earnings statement , Statement of financial position. Service Revenue = 131720arrow_forwardUse the following information from XYZ Company's balance sheet to answer the next six questions: Assets a. b. c. d. a. b. 30. C. d. Cash........ Marketable Securities Accounts Receivable Inventory........ Property and Equipment. Accumulated Depreciation. Total Assets a. b. c. d. Liabilities and Stockholders' Equity Accounts Payable. Notes Payable (current). Mortgage Payable (long-term). Bonds Payable (long-term). Common Stock, $50 Par.. The average number of common stock shares outstanding during the year was 840 shares. Net earnings for the year were $6,300. 25. XYZ's current ratio is 6.0 to 1. 5.5 to 1. 26. XYZ's quick (acid-test) ratio is 4.0 to 1. 4.5 to 1. 3.5 to 1. 3.0 to 1. Paid-in Capital in Excess of Par......... Retained Earnings............ Total Liabilities, and Stockholders' Equity 4.0 to 1. 4.5 to 1. ***** 27. XYZ's earnings per share is $7.50 per share. $7.00 per share. $0.13 per share. $6,300 per share. 28. XYZ's return on assets is a. 6.9% b. 7.9% C. 14.6% d. 23.4% 29.…arrow_forward
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