Intermediate Accounting Problems

P 3-1

Balance sheet preparation

Don't use plagiarized sources. Get Your Custom Essay on
Intermediate Accounting Problems
From $10/Page
Order Essay

Presented below is a list of balance sheet accounts in alphabetical order.

Accounts payable

Inventories

Accounts receivable

Land (in use)

Accumulated depreciation—buildings

Long-term investments

Accumulated depreciation—equipment

Notes payable (due in 6 months)

Allowance for uncollectible accounts

Notes receivable (due in 2 years)

Bond sinking fund

Patent

Bonds payable (due in 10 years)

Preferred stock

Buildings

Prepaid expenses

Cash

Rent payable (current)

Common stock

Retained earnings

Copyright

Short-term investments

Equipment

Taxes payable

Interest receivable (due in three months)

Wages payable

Required:

Prepare a classified balance sheet ignoring monetary amounts.

P 3-2

Balance sheet preparation; missing elements

The data listed below are taken from a balance sheet of Trident Corporation. Some amounts, indicated by question marks, have been intentionally omitted.

 

Required:

1.

Determine the missing amounts.

2.

Prepare Trident’s classified balance sheet.

 

P 3-3

Balance sheet preparation

p. 155

The following is a December 31, 2011, post-closing trial balance for Almway Corporation.

Additional information:

1.

The investment account includes an investment in common stock of another corporation of $30,000 which management intends to hold for at least three years. The balance of these investments are intended to be sold in the coming year.

2.

The land account includes land which cost $25,000 that the company has not used and is currently listed for sale.

3.

The cash account includes $15,000 set aside in a fund to pay bonds payable that mature in 2014 and $23,000 set aside in a three-month Treasury bill.

4.

The notes payable account consists of the following:

a.

a $30,000 note due in six months.

b.

a $50,000 note due in six years.

c.

a $50,000 note due in five annual installments of $10,000 each, with the next installment due February 15, 2012.

5.

The $60,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000.

6.

The common stock account represents 100,000 shares of no par value common stock issued and outstanding. The corporation has 500,000 shares authorized.

Required:

Prepare a classified balance sheet for the Almway Corporation at December 31, 2011.

P 3-4

Balance sheet preparation

The following is a December 31, 2011, post-closing trial balance for the Weismuller Publishing Company.

p. 156

Additional information:

1.

Prepaid expenses include $120,000 paid on December 31, 2011, for a two-year lease on the building that houses both the administrative offices and the manufacturing facility.

2.

Investments include $30,000 in Treasury bills purchased on November 30, 2011. The bills mature on January 30, 2012. The remaining $110,000 includes investments in marketable equity securities that the company intends to sell in the next year.

3.

Unearned revenue represents customer prepayments for magazine subscriptions. Subscriptions are for periods of one year or less.

4.

The notes payable account consists of the following:

a.

a $40,000 note due in six months.

b.

a $100,000 note due in six years.

c.

a $60,000 note due in three annual installments of $20,000 each, with the next installment due August 31, 2012.

5.

The common stock account represents 400,000 shares of no par value common stock issued and outstanding. The corporation has 800,000 shares authorized.

Required:

Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2011.

P 3-5

Balance sheet preparation

The following is a June 30, 2011, post-closing trial balance for Excell Company.

Additional information:

1.

The short-term investments account includes $18,000 in U.S. treasury bills purchased in May. The bills mature in July.

2.

The accounts receivable account consists of the following:

 

3.

The notes payable account consists of two notes of $50,000 each. One note is due on September 30, 2011, and the other is due on November 30, 2012.

4.

The mortgage payable is payable in semiannual installments of $5,000 each plus interest. The next payment is due on October 31, 2011. Interest has been properly accrued and is included in accrued expenses.

5.

Five hundred thousand shares of no par common stock are authorized, of which 200,000 shares have been issued and are outstanding.

6.

The land account includes $50,000 representing the cost of the land on which the company’s office building resides. The remaining $25,000 is the cost of land that the company is holding for investment purposes.

Required:

Prepare a classified balance sheet for the Excell Company at June 30, 2011.

P 3-6

Balance sheet preparation; disclosures

 

p. 157

The following is a December 31, 2011, post-closing trial balance for the Vosburgh Electronics Corporation.

 

Additional information:

1.

The common stock represents 1 million shares of no par stock authorized, 500,000 shares issued and outstanding.

2.

The loans to employees are due on June 30, 2012.

3.

The note receivable is due in installments of $50,000, payable on each September 30. Interest is payable annually.

4.

Short-term investments consist of marketable equity securities that the company plans to sell in 2012 and $50,000 in treasury bills purchased on December 15 of the current year that mature on February 15, 2012. Long-term investments consist of marketable equity securities that the company does not plan to sell in the next year.

5.

Unearned revenue represents customer payments for extended service contracts. Eighty percent of these contracts expire in 2012, the remainder in 2013.

6.

Notes payable consists of two notes, one for $100,000 due on January 15, 2013, and another for $200,000 due on June 30, 2014.

Required:

1.

Prepare a classified balance sheet for Vosburgh at December 31, 2011.

2.

Identify the items that would require additional disclosure, either on the face of the balance sheet or in a disclosure note.

 

P 3-7

Balance sheet preparation; errors

The following balance sheet for the Hubbard Corporation was prepared by the company:

 

 

p. 158

Additional information:

1.

The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $50,000 but, due to a significant increase in market value, is listed at $120,000. The increase in the land account was credited to retained earnings.

2.

Marketable equity securities consist of stocks of other corporations and are recorded at cost, $20,000 of which will be sold in the coming year. The remainder will be held indefinitely.

3.

Notes payable are all long-term. However, a $100,000 note requires an installment payment of $25,000 due in the coming year.

4.

Inventories are recorded at current resale value. The original cost of the inventories is $160,000.

Required:

Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2011.

P 3-8

Balance sheet; errors; missing amounts

The following incomplete balance sheet for the Sanderson Manufacturing Company was prepared by the company’s controller. As accounting manager for Sanderson, you are attempting to reconstruct and revise the balance sheet.

p. 159

Additional information ($ in 000s):

1.

Certain records that included the account balances for the patent and shareholders’ equity items were lost. However, the controller told you that a complete, preliminary balance sheet prepared before the records were lost showed a debt to equity ratio of 1.2. That is, total liabilities are 120% of total shareholders’ equity. Retained earnings at the beginning of the year was $4,000. Net income for 2011 was $1,560 and $560 in cash dividends were declared and paid to shareholders.

2.

Management intends to sell the investments in the next six months.

3.

Interest on both the note and the bonds is payable annually.

4.

The note payable is due in annual installments of $1,000 each.

5.

Unearned revenue will be earned equally over the next two fiscal years.

6.

The common stock represents 400,000 shares of no par stock authorized, 250,000 shares issued and outstanding.

Required:

Prepare a complete, corrected, classified balance sheet.

P 3-9

Balance sheet preparation

Presented below is the balance sheet for HHD, Inc., at December 31, 2011.

 

The captions shown in the summarized statement above include the following:

a.

Current assets: cash, $150,000; accounts receivable, $200,000; inventories, $225,000; and prepaid insurance, $25,000.

b.

Investments: investments in common stock, short term, $90,000, and long term, $160,000; and bond sinking fund, $250,000.

c.

Property, plant, and equipment: buildings, $1,500,000 less accumulated depreciation, $600,000; equipment, $500,000 less accumulated depreciation, $200,000; and land, $800,000.

d.

Intangible assets: patent, $110,000; and copyright, $90,000.

e.

Current liabilities: accounts payable, $100,000; notes payable, short term, $150,000, and long term, $90,000; and taxes payable, $60,000.

f.

Long-term liabilities: bonds payable due 2016.

g.

Shareholders’ equity: common stock, $1,000,000; retained earnings, $800,000. Five hundred thousand shares of no par common stock are authorized, of which 200,000 shares were issued and are outstanding.

Required:

Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2011.

P 3-10

Balance sheet preparation

 

 

Melody Lane Music Company was started by John Ross early in 2011. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan. The company operates a retail store that sells records, tapes, and compact discs. Business was so good during the first year of operations that John is considering opening a second store on the other side of town. The funds necessary for expansion will come from a new bank loan. In order to approve the loan, the bank requires financial statements.

John asks for your help in preparing the balance sheet and presents you with the following information for the year ending December 31, 2011:

 

c.

The bank loan was made on March 31, 2011. A note was signed requiring payment of interest and principal on March 31, 2012. The interest rate is 12%.

p. 160

d.

The equipment and furniture were purchased on January 3, 2011, and have an estimated useful life of 10 years with no anticipated salvage value. Depreciation per year is $4,000.

e.

Inventories on hand at the end of the year cost $100,000.

f.

Amounts owed at December 31, 2011, were as follows:

 

g.

Rent on the store building is $1,000 per month. On December 1, 2011, four months’ rent was paid in advance.

h.

Net income for the year was $76,000. Assume that the company is not subject to federal, state, or local income tax.

i.

One hundred thousand shares of no par common stock are authorized, of which 20,000 shares were issued and are outstanding.To continue with the answer check on mycoursewriter.com/

MyCourseWriter
Order NOW For A 35% Discount!
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Homework Writing

Do you need to ace your test? We have qualified writers to assist you in writing 100% quality homework writing. Mycoursewriter offers students unique and personalized custom papers that help them in getting good grades. Our academic experts will assist you with your dissertation papers, thesis writing, research papers, term papers, and case study homework help. Our writers are experienced and have perfected the art of crafting the best essay writing papers regardless of your academic level. Order now and get our superb homework writing services.

Expert Academic Writers

A student needs professional assistance outside class time. Before hiring our writers, they undergo thorough tests and strict educational backgrounds. After passing a test, our writers undergo training to ensure they deliver expert professional papers to our customers. We ensure they meet the timely delivery of papers and follow our customers' provided instructions. Every writer is an ENL writer and is from the USA, Canada, UK, or Australia. Our experts approach papers effectively depending on their area of specialization.

Affordable Price Guarantees

Is the deal too good to be true? Mycoursewriter is the most affordable assignment help website on the market. We consider students' daily needs for academic help. Our paper costs are reasonably priced to approximately 90% of students around the globe. Our main aim is to ensure students achieve academic excellence, and we believe inconsiderable prices should not hinder students from getting quality homework writing help. In case of any dissatisfaction, we offer unlimited revisions and rewrites without extra charges.

Timely delivery of papers

Tight deadline? Is your paper due in the next few hours? Worry no more. Our writers are here for your rescue. Many college students find it hard to balance their social and academic life and get caught up with academic deadlines. Drafting your paper at the last minute does not allow you to conduct extensive research and craft the correct answers. We have expert writers ready to work on your assignment writing. Urgent writing services are the ultimate solutions you need. We guarantee you timely delivery of papers at your convenience and specified time delivery of the customer.

100% Original Tasks

The ultimate deal-breaker in achieving good grades is submitting imitative papers. Plagiarism is a breach of examination standards and has serious consequences. Students need to deliver papers written in their understanding by paraphrasing their research findings and relevant citations. Our expert's primary consideration is providing free plagiarized papers that meet the lecturers' requirements. Our editors will proofread your paper before delivery ad ensure your papers will not be substandard. We guarantee extreme originality, and in case of any customer concerns, we offer a plagiarism report.

All Round the clock Customer Support

Our website is user-friendly and super useful! Mycoursewriter is the most trusted online writing website always available to provide you with assignment writing services that you need. Our primary concern is meeting customer need specifications by our friendly customer support team that Is available all the time. Our website usability is self-learnable but in case of any problem, feel free to contact us directly through our website email: support@mycourserwiter.com. We have diligently satisfied thousands of students, and you can witness this on our sites' review page.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Advantages of Using Our Assignment writing Services

Mycoursewriter welcomes you for superb essay writing services. We are a legit site offering help with your most challenging homework writing assignments at affordable prices. Your essay paper will be assigned to a professional writer who will craft the paper from scratch according to your provided instructions.

Essays

Essay Writing and Proofreading Services

Essay writing is a common assignment writing for most college students. It takes a lot of time to craft a complete perfect essay. Mycourserwiter offers the best essay writing and proofreading services for most college students. Your paper is assigned to an expert writer who does thorough research on fresh ideas and personalizes your essay paper according to your assignment writing guidelines. Our essays are entirely exceptional and undergo a strict procedure that includes papers free from plagiarism and thorough proofreading.

Admissions

Admission and Business Papers

Writing an admission paper is not every student's desire, and this should not hinder any student from earning an admission. Writing a perfect personal statement to earn a position in a dream school or job can be stressful. Personal statements should display a high level of confidence and uniqueness. Admission essays require you to have a vast knowledge of the current happenings in the world and knowhow of the business world. We have qualified writers with skills who will write your admission paper through comprehensive research. All you have to do is provide us with little details about yourself, instructions and our writers will craft a perfect paper for you.

Editing

Editing and Proofreading

Mycoursewriter offers you assignment writing services free from grammatical and formatting mistakes. An error-free paper is significant in scoring the desired maximum grades. We have a team of editors who will go through your paper after our expert writers have delivered their fully crafted papers. Our writers will cover all the aspects of your paper instructions, such as fonts, spacing, and educational formats. Our team of editors will check through your paper to make sure it meets the formatting style provided in the paper instructions. Under no circumstances will a poorly formatted paper will be forwarded to you as our team of editors will ensure careful proofreading.

Coursework

Technical Papers

Assignment writing is part of a learning process, and one may not have the knowledge to answer all questions correctly. This should not be a stress to you as we have qualified essay writing experts to help you. Our qualified writers are holders of PhDs, Degrees, and Masters in different areas of study and can handle any papers regardless of the complexity. Multiple assignments may be challenging to finish on time. Our skilled professional writers are here to assist you in crafting all the correct answers for your assignment. Stop stressing about your homework writing and place an order with us, and our expert writers will provide you with the best assignment help.