Problems : Set A 83

xercise :Set Band

Challeng Exercises
Visit the book's companion website, at www.wiley.com/collegelkimmel, and choose
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roblems: tA
P2-1A The following items are taken from the 2008 balance sheet of Yahoo! Inc. (All Prepare a classified balance
dollars are in thousands.) sheet.
Intangible assets $3,926,749 (SO 1), AP
Common stock 6,282,504
Property and equipment, net 1,536,181
Accounts payable 151,897
Other assets 233,989
Long-term investments 3,247,431
Accounts receivable 1,060,450
Prepaid expenses and other current assets 233,061
Short-term investments 1,159,691
Retained earnings 4,968,438
Cash and cash equivalents 2,292,296
Long-term debt 733,891
Accrued expenses and other current liabilities 1,139,894
Unearned revenue-current 413 ,224
Instructions Tot. current assets $4,745,498
Prepare a classified balance sheet for Yahoo! Inc. as of December 31, 2008. Tot. assets $13,6nn "'"
2-2A These items are taken from the financial statements of Xenox Corporation for Prepare financial statements.
2012. (SO 1, 3), AP
Retained earnings (beginning of year) $31,000
Utilities expense 2,000
Equipment 66,000
Accounts payable 18,300
Cash 10,100
Salaries and wages payable 3,000
Common stock 12,000
Dividends 12,000
Service revenue 68,000
Prepaid insurance 3,500
Maintenance and repairs expense 1,800
Depreciation expense 3,600
Accounts receivable 11,700
Insurance expense 2,200
Salaries and wages expense 37,000
Accumulated depreciation-equipment 17,600
Instructions
Prepare an income statement, a retained earnings statement, and a classified bala nce Net income $21,400
heet as of December 31, 2012. Tot. assets
P2-3A You are provided with the following information for Merrell Enterprises, effec- Prepare financial statements.
ti\'e as of its April 30, 2012, year-end. (SO 1, 3), AP
Accounts payable $ 834
Accounts receivable 810
Accumulated depreciation-equipment 670
Cash 1,270
Common stock 900
Cost of goods sold 1,060