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1. Blues Corporation's trial balance included the following account balances at December 31, 2011:

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1. Blues Corporation's trial balance included the following account balances at December 31, 2011;Accounts Payable........................................ $45,000;Bonds Payable, due 2012................................. 75,000;Discount on Bonds Payable, due 2012..................... 9,000;Dividends Payable January 31, 2012...................... 24,000;Notes Payable, due January 31, 2015..................... 60,000;What amount should be included in the current liability section of Blues' December 31, 2011, balance sheet?;a. $135,000;b. $153,000;c. $195,000;d. $234,000;2. Information from Blain Company's balance sheet is as follows;Current assets;Cash.................................................... $ 1,200,000;Investment securities................................... 3,750,000;Accounts receivable..................................... 28,800,000;Inventories............................................. 33,150,000;Prepaid expenses........................................ 600,000;Total current assets.................................... $67,500,000;Current liabilities;Notes payable........................................... $ 750,000;Accounts payable........................................ 9,750,000;Accrued expenses........................................ 6,250,000;Income taxes payable.................................... 250,000;Payments due within one year on long-term debt.......... 1,750,000;Total current liabilities............................. $18,750,000;What is Blain's quick (acid-test) ratio?;a. 0.26 to 1;b. 0.30 to 1;c. 1.80 to 1;d. 3.60 to 1;3. Information from Blain Company's balance sheet is as follows: Current assets;Current assets;Cash.................................................... $ 1,200,000;Investment securities................................... 3,750,000;Accounts receivable..................................... 28,800,000;Inventories............................................. 33,150,000;Prepaid expenses........................................ 600,000;Total current assets.................................... $67,500,000;Current liabilities;Notes payable........................................... $ 750,000;Accounts payable........................................ 9,750,000;Accrued expenses........................................ 6,250,000;Income taxes payable.................................... 250,000;Payments due within one year on long-term debt.......... 1,750,000;Total current liabilities............................... $18,750,000;What is Blain's current ratio?;a. 0.26 to 1;b. 0.30 to 1;c. 1.80 to 1;d. 3.60 to 1;4. Treasury stock should be reported;a. as a current asset only if it will be sold within the next year or the operating cycle, whichever is longer.;b. as a current asset only if it will be sold within the next year or the operating cycle, whichever is shorter.;c. in the Investments and Funds section of the balance sheet.;d. as a deduction from total stockholders' equity on the balance sheet.;5. Account balances and supplemental information for the Bighorn Corporation as of December 31, 2012, are given below;Accounts Payable....................................... $ 75,900;Accounts Receivable.................................... 141,600;Accumulated Depreciation--Equipment.................... 84,000;Bonds Payable.......................................... 300,000;Cash................................................... 243,900;Common Stock........................................... 1,560,000;Deferred Income Tax Liability (noncurrent)............. 6,900;Dividends Payable...................................... 45,000;Equipment.............................................. 840,000;Income Taxes Payable................................... 91,500;Inventory.............................................. 395,100;Investment in Land..................................... 510,000;Investment in Stock of Subsidiary...................... 492,000;Note Payable........................................... 120,000;Notes Receivable....................................... 150,000;Prepaid Insurance...................................... 7,200;Retained Earnings...................................... 453,600;Salaries and Wages Payable............................. 42,900;(a) $300,000 of 12% bonds were sold on November 1, 2012, at par.;(b) 40,000 shares of $30 par value common stock were sold for $1,560,000.;(c) All the equipment was purchased on January 2, 2011. The depreciation rate is 10 percent per year.;(d) 5 percent of accounts receivable are expected to be uncollectible.;(e) A two-year insurance policy was purchased on May 1, 2012, for $7,200.;(f) Accrued interest on $150,000 of short-term notes receivable from customers was $5,100 at December 31, 2012.;(g) $120,000 was borrowed from the bank on a 5-year, 10% note payable dated July 1, 2012. The loan is to be repaid in 10 semiannual payments of $12,000 plus interest, with the first payment due January 1, 2013.;Prepare a properly classified balance sheet in report form for Bighorn Corporation as of December 31, 2012.

 

Paper#25507 | Written in 18-Jul-2015

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