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E5-2 (Classification of Balance Sheet Accounts) Presented below are the captions of Faulk Company?s balance sheet.




Question;E5-2 (Classification of Balance Sheet Accounts);Presented below are the captions of Faulk Company?s balance sheet.(a) Current;assets. (b) Investments. (c) Property, plant, and equipment. (d) Intangible;assets. (e) Other assets.Instructions(f) Current;liabilities. (g) Noncurrent liabilities. (h) Capital stock. (i) Additional paid-in capital. (j) Retained earnings.Indicate by letter where each of the following items;would be classified.1.Preferred stock. 2.Goodwill. 3.Salaries and wages payable. 4.Accounts payable. 5. Buildings.;6.Equity investments (trading). 7.Current maturity of long-term debt. 8.Premium on bonds payable. 9.Allowance;for doubtful accounts.10.Accounts receivable.11.Cash surrender value of life insurance. 12.Notes payable (due next year). 13.Supplies. 14.Common;stock.15. Land. 16.Bond;sinking fund. 17.Inventory. 18.Prepaid insurance. 19.Bonds payable.20. Income;taxes payable. E5-4;(Preparation of a Classified Balance Sheet) Assume that Denis Savard Inc. has;the following accounts at the end of the current year.1. Common;Stock. 2. Discount on Bonds Payable.;3. Treasury Stock (at cost). 4. Notes Payable (short-term). 5. Raw Materials. 6. Preferred Stock Investments (long-term).;7. Unearned Rent Revenue. 8. Work in Process. 9. Copyrights.10. Buildings.;11. Notes Receivable (short-term). 12. Cash. 13. Salaries;and Wages Payable.Instructions14. Accumulated;Depreciation?Buildings. 15. Restricted;Cash for Plant Expansion. 16. Land;Held for Future Plant Site. 17. Allowance;for Doubtful Accounts.18. Retained;Earnings. 19. Paid-in Capital;in Excess of Par?Common Stock. 20. Unearned;Subscriptions Revenue. 21. Receivables?Officers;(due in one year). 22. Inventory (finished;goods). 23. Accounts;Receivable. 24. Bonds Payable (due;in 4 years). 25. Noncontrolling;Interest.Prepare a classified balance sheet in good form. (No;monetary amounts are necessary E5-13 (Statement of Cash Flows?Classifications) The;major classifications of activities reported in the statement of cash flows are;operating, investing, and financing. Classify each of the transactions listed;below as:1. Operating;activity?add to net income. 2. Operating;activity?deduct from net income. 3. Investing;activity. 4. Financing activity. 5. Reported as significant noncash activity.The transactions are as follows.(a) Issuance;of common stock. (b) Purchase of land and building. (c) Redemption of bonds. (d) Sale of equipment. (e) Depreciation of machinery. (f) Amortization of patent. (g) Issuance of bonds for plant assets.(h) Payment;of cash dividends. (i) Exchange;of furniture for office equipment. (j) Purchase;of treasury stock. (k) Loss on sale;of equipment. (l) Increase in accounts;receivable during the year. (m) Decrease;in accounts payable during the yearP5-2 (Balance;Sheet Preparation) for the current year, 2014.Goodwill Payroll taxes payable Bonds payable;Discount on bonds payable Cash Land Notes receivable Notes payable (to banks);Accounts payable Retained earnings Income taxes receivable Notes payable (long-term)InstructionsPresented below are a number of balance sheet items;for Montoya, Inc.,$125,000 177,591 300,00015,000 360,000 480,000 445,700 265,000 490,000$Accumulated depreciation?equipment Inventory Rent;payable (short-term) Income taxes payableRent payable (long-term) Common stock, $1 par value;Preferred stock, $10 par value Prepaid expenses? 97,630 1,600,000292,000 239,800 45,000 98,362 480,000 200,000;150,000 87,920 Equipment 1,470,000 Equity investments (trading) 121,000 Accumulated depreciation?buildings 270,200 Buildings 1,640,000Prepare a classified balance sheet in good form.;Common stock authorized was 400,000 shares, and pre- ferred stock authorized;was 20,000 shares. Assume that notes receivable and notes payable are;short-term, unless stated otherwise. Cost and fair value of equity investments;(trading) are the same.;="msonormal">


Paper#37626 | Written in 18-Jul-2015

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