Professional Documents
Culture Documents
Solutions To Chapter 5
Solutions To Chapter 5
$ 175,000
$730,000
160,000 $570,000
265,000
105,000
Intangible assets
Goodwill...................................................
Other identifiable assets.........................
Total non-current assets.........................
Current assets
Inventories, at lower of average
cost or net realizable value.................
Accounts receivable............................... 357,000
Less: Allowance for doubtful
accounts...................................... 17,000
Prepaid expenses....................................
Trading securitiesat fair value............
Cash.........................................................
Total current assets..........................
160,000
80,000
90,000
730,000
170,000
1,075,000
401,000
340,000
12,000
120,000
260,000
1,133,000
Total assets........................................
$2,208,000
$470,000
794,000*
$1,264,000
553,000
82,000
$635,000
125,000
135,000
49,000
309,000
944,000
$2,208,000
48,000
9,000
Intangible assets
Trademark...............................................................
Current assets
Office supplies........................................................
Prepaid insurance..................................................
Cash........................................................................
Total current assets........................................
Total assets......................................................
39,000
950
1,200
1,000
6,850*
9,050
49,000
10,000
17,500
Non-current liabilities
Bonds payable
Current liabilities
Accounts payable
Wages payable
Unearned service revenue
Total current liabilities
Total liabilities
Total equity and liabilities
*[49,000 39,000 950 1,200 1,000]
27,500
9,000
10,000
500
2,000
12,500
21,500
49,000
$299,000
277,000
260,000
688,000
540,000
1,488,000
160,000
195,000
435,000
25,000
$ 576,000
355,000
2,419,000
597,000
410,000
153,000
197,000
1,357,000
$3,776,000
Equity
Share capitalordinary ($5 par).......................
Retained earnings*.............................................
Accumulated other comprehensive
income............................................................
Less: Treasury shares......................................
Total equity.................................................
Non-current liabilities
Bonds payable....................................................
$1,000,000
Long-term notes payable...................................
900,000
Provision for pensions......................................
80,000
Total non-current liabilities.......................
Current liabilities
Short-term notes payable..................................
$ 90,000
Accounts payable...............................................
455,000
Dividends payable..............................................
136,000
Accrued liabilities..............................................
96,000
Total current liabilities...............................
Total liabilities............................................
Total equity and liabilities.......................................
$1,000,000
130,000
80,000
191,000
$1,019,000
1,980,000
777,000
2,757,000
$3,776,000
$7,900,000
63,000
(4,800,000)
(2,000,000)
(900,000)
(211,000)
$ 52,000
$
78,000
52,000
$ 130,000
$1,019,000
191,000
1,080,000
$ 130,000
PROBLEM 5-2
MONTOYA, INC.
Statement of Financial Position
December 31, 2010
Assets
Non-current assets
Property, plant, and equipment
Land......................................................
480,000
Building................................................ 1,640,000
Less: Accum. depreciation
building............................... 270,200 1,369,800
Equipment............................................ 1,470,000
Less: Accum. depreciation
equipment........................... 292,000 1,178,000
Intangible assets
Goodwill................................................
Current assets
Inventories............................................
Notes receivable..................................
Income taxes receivable......................
Prepaid expenses................................
Trading securities................................
Cash......................................................
Total current assets.......................
Total assets....................................
3,027,800
125,000
239,800
445,700
97,630
87,920
121,000
360,000
1,352,050
4,504,850
Equity
Share capital
Share capitalPreference
10 par; 20,000 shares
authorized, 15,000
shares issued.................................. 150,000
Share capitalordinary, 1 par;
400,000 shares authorized,
200,000 issued................................. 200,000
Retained earnings
(1,063,897 350,000)......................
Total shareholders equity
(4,504,850 3,440,953).............
Non-current liabilities
Unsecured notes payable
(long-term).........................................1,600,000
Bonds payable...................................... 285,000
Long-term rental obligations............... 480,000
Total non-current liabilities...........
Current liabilities
Notes payable to banks........................ 265,000
Accounts payable................................. 490,000
Payroll taxes payable............................ 177,591
Taxes payable........................................ 98,362
Rent payable.......................................... 45,000
Total current liabilities....................
Total liabilities.................................
Total equity and liabilities..............
Au: Is it correct. Pls confirm
350,000
713,897
1,063,897
2,365,000
1,075,953
3,440,953
4,504,850
PROBLEM 5-3
EASTWOOD COMPANY
Statement of Financial Position
December 31, 2010
Assets
Non-current assets
Long-term investments
Investments in capital shares and,
bonds ($120,000 have been pledged
as security for notes payable)
at fair value..............................................
Property, plant, and equipment
Cost of uncompleted plant facilities
Land....................................................
Building in process of
construction...................................
Equipment................................................
Less: Accum. depreciation....................
$339,000
$85,000
124,000
400,000
240,000
$209,000
160,000
Intangible assets
Patents (at cost less amortization)........
Current assets
Inventory (Average cost)........................
Accounts receivable............................... 163,500
Less: Allowance for doubtful
accounts.......................................
8,700
Prepaid insurance...................................
Cash.........................................................
Total current assets..........................
Total assets........................................
369,000
36,000
208,500
154,800
5,900
41,000
410,200
$1,154,200
Equity
Share capitalordinary
Authorized 600,000 shares of $1
par value; issued and
outstanding, 500,000 shares.........
Share premiumordinary....................
Retained earnings.................................
Total shareholders equity..............
Non-current liabilities
8% bonds payable, due
January 1, 2021..................................
Current liabilities
Notes payable, secured by
investments of $120,000..................... $ 94,000
Accounts payable................................. 148,000
Accrued expenses................................
49,200
Total current liabilities....................
Total liabilities.................................
Total equity and liabilities..........................
Au: Is it correct. Pls confirm
$500,000
45,000
138,000
683,000
180,000
291,200
471,200
$1,154,200