Week 4 acc421 Team Textbook Assignemtn
Week Four - Textbook Assignment
ACC/421
Date
Instructor
Problem 5-3
EASTWOOD COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $ 41,000
Accounts Receivable $163,500
Less: Allowance for
Doubtful Accounts $ 8,700 $ 154,800
Inventory $ 208,500
Prepaid Insurance $ 5,900
Total Current Assets $ 410,200
Long-term Investments
Investments in Stock and Bonds $ 339,000
Property, Plant, and Equipment
Cost of Uncompleted Plant
Facilities Land $ 85,000
Building in Process of Construction $ 124,000 $ 209,000
Equipment 400,000
Less: Accum. Depreciation $ 240,000 $ 160,000 $ 369,000
Intangible Assets
Patents $ 36,000
Total Assets $ 1,154,200
Liabilities and Stockholders’ Equity
Current Liabilities
Notes Payable, Secured by investments of $120,000 $ 94,000
Accounts Payable $ 148,000
Accrued Expenses $ 49,200
Total Current Liabilities $ 291,200
Long-term Liabilities
8% Bonds Payable $ 200,000
Less: Unamortized Discount on Bonds Payable $ 20,000 $ 180,000
Total Liabilities $ 471,200
Stockholders’ Equity
Common Stock $ 500,000
Paid in Capital in excess of par – common stock $ 45,000 $ 545,000
Retained Earnings $ 138,000 $ 683,000
Total Liabilities and Stockholders’ Equity $1,154,200
CA24-2
What information regarding inventories and property, plant, and equipment must be disclosed by Koch Corporation in the audited financial statements issued to stockholders, either in the body or the notes, for the 2010–2011 fiscal year?
(Disclosures Required in Various Situations) Ace Inc. produces electronic components for sale to manufacturers of radios, television sets, and digital sound systems. In connection with her examination of Ace's financial statements for the year ended December 31,
ACC/421
Date
Instructor
Problem 5-3
EASTWOOD COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $ 41,000
Accounts Receivable $163,500
Less: Allowance for
Doubtful Accounts $ 8,700 $ 154,800
Inventory $ 208,500
Prepaid Insurance $ 5,900
Total Current Assets $ 410,200
Long-term Investments
Investments in Stock and Bonds $ 339,000
Property, Plant, and Equipment
Cost of Uncompleted Plant
Facilities Land $ 85,000
Building in Process of Construction $ 124,000 $ 209,000
Equipment 400,000
Less: Accum. Depreciation $ 240,000 $ 160,000 $ 369,000
Intangible Assets
Patents $ 36,000
Total Assets $ 1,154,200
Liabilities and Stockholders’ Equity
Current Liabilities
Notes Payable, Secured by investments of $120,000 $ 94,000
Accounts Payable $ 148,000
Accrued Expenses $ 49,200
Total Current Liabilities $ 291,200
Long-term Liabilities
8% Bonds Payable $ 200,000
Less: Unamortized Discount on Bonds Payable $ 20,000 $ 180,000
Total Liabilities $ 471,200
Stockholders’ Equity
Common Stock $ 500,000
Paid in Capital in excess of par – common stock $ 45,000 $ 545,000
Retained Earnings $ 138,000 $ 683,000
Total Liabilities and Stockholders’ Equity $1,154,200
CA24-2
What information regarding inventories and property, plant, and equipment must be disclosed by Koch Corporation in the audited financial statements issued to stockholders, either in the body or the notes, for the 2010–2011 fiscal year?
(Disclosures Required in Various Situations) Ace Inc. produces electronic components for sale to manufacturers of radios, television sets, and digital sound systems. In connection with her examination of Ace's financial statements for the year ended December 31,