Financial Accounting
14th Edition
ISBN: 9781305088436
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 1, Problem 22E
a)
To determine
Identify the list of items that will appear in the financial statements (income statement or
b)
To determine
Identify if an item can appear on more than one financial statement (income statement or balance sheet).
c)
To determine
Explain if the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is total assets on this company's balance sheet?
What is total current liabilities on this company's balance sheet?
What is the correct order for the current liabilities section of the balance sheet?
a. Accounts payable, payments to suppliers, deferred revenue, income tax payable
b. Bank loan payable, Income tax payable, Accounts payable, Deferred revenue
c. Accounts payable, Income tax payable, Payments to suppliers
d. Accounts payable, Deferred revenue, Income tax payable
e. Accounts payable, Income tax payable
Enter the letter that corresponds to your choice. (A B C D E)
What is total liabilities on this company's balance sheet?
What is total equity on this company's balance sheet?
What is the correct order for the equity section of the balance sheet?
a. Owners' Capital, Retained earnings
b. Retained earnings, Owners' capital
c. Retained earnings, Owners' capital, Profit
d. Retained earnings, Profit, Owners' capital
e.…
The current balance sheet of J.J. Arvesen Company contains the following major sections:
A. Current assets
B. Long-term investments
C. Property, plant, and equipment
D. Intangible assets
E. Other assets
F. Current liabilities
G. Long-term liabilities
H. Contributed capital
I. Retained earnings
J. Accumulated other comprehensive income
The following is a list of accounts. Using the letters A through J, indicate in which section of the balance sheet each account would most likely be classified. If an account does not belong under one of the sections listed, select "Not under any of the choices" from the
classification drop down box. For all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no".
Contra or
Account
Classification
Deducted (Yes/No)
1. Patents (net)
2. Income taxes payable
3. Notes receivable (due in 5 months)
4. Unearned rent
5. Discount…
Presented below are the captions of Nikos SpA's statement of financial position. Indicate where each of the following items would be
classified.
Statement of Financial Position Accounts
Statement of Financial Position Classification
1.
Share capital-preference.
2.
Goodwill.
3.
Salaries and wages payable.
4.
Accounts payable.
5.
Buildings.
6.
Trading securities.
7.
Current portion of long-term debt.
8.
Patents.
9.
Allowance for doubtful accounts.
10.
Accounts receivable.
>
>
>
>
>
>
>
Chapter 1 Solutions
Financial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - A business had revenues of 640,000 and operating...Ch. 1 - The financial statements are interrelated. (a)...
Ch. 1 - On February 22, Kountry Repair Service extended an...Ch. 1 - On March 31, Higgins Repair Service extended an...Ch. 1 - Brock Hahn is the owner and operator of Dream-It...Ch. 1 - Fritz Evans is the owner and operator of...Ch. 1 - Arrowhead Delivery Service is owned and operated...Ch. 1 - Interstate Delivery Service is owned and operated...Ch. 1 - Prob. 4PEACh. 1 - The revenues and expenses of Sentinel Travel...Ch. 1 - Using the income statement for Ousel Travel...Ch. 1 - Using the income statement for Sentinel Travel...Ch. 1 - Using the following data for Ousel Travel Service...Ch. 1 - Using the following data for Sentinel Travel...Ch. 1 - A summary of cash flows for Ousel Travel Service...Ch. 1 - A summary of cash flows for Sentinel Travel...Ch. 1 - Prob. 8PEACh. 1 - Prob. 8PEBCh. 1 - The following is a list of well-known companies:...Ch. 1 - Prob. 2ECh. 1 - Ozark Sports sells hunting and fishing equipment...Ch. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Annie Rasmussen is the owner and operator of Go44,...Ch. 1 - Indicate whether each of the following is...Ch. 1 - Describe how the following business transactions...Ch. 1 - Prob. 10ECh. 1 - Indicate whether each of the following types of...Ch. 1 - The following selected transactions were completed...Ch. 1 - Teri West operates her own catering service....Ch. 1 - The income statement of a proprietorship for the...Ch. 1 - Four different proprietorships, Jupiter, Mars,...Ch. 1 - From the following list of selected items taken...Ch. 1 - Based on the data presented in Exercise 1-16,...Ch. 1 - Financial information related to Udder Products...Ch. 1 - Dairy Services was organized on August 1, 2016. A...Ch. 1 - One item is omitted in each of the following...Ch. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Indicate whether each of the following activities...Ch. 1 - A summary of cash flows for Ethos Consulting Group...Ch. 1 - Prob. 25ECh. 1 - Prob. 26ECh. 1 - Lowes Companies Inc., a major competitor of The...Ch. 1 - On April 1 of the current year, Andrea Byrd...Ch. 1 - The amounts of the assets and liabilities of...Ch. 1 - Seth Feye established Reliance Financial Services...Ch. 1 - On July 1, 2016, Pat Glenn established Half Moon...Ch. 1 - DLite Dry Cleaners is owned and operated by Joel...Ch. 1 - The financial statements at the end of Wolverine...Ch. 1 - Amy Austin established an insurance agency on...Ch. 1 - The amounts of the assets and liabilities of...Ch. 1 - Jose Loder established Bronco Consulting on August...Ch. 1 - On April 1, 2016, Maria Adams established Custom...Ch. 1 - Bevs Dry Cleaners is owned and operated by Beverly...Ch. 1 - The financial statements at the end of Atlas...Ch. 1 - Prob. 1COPCh. 1 - Colleen Fernandez, president of Rhino Enterprises,...Ch. 1 - Prob. 2CPCh. 1 - Prob. 3CP
Knowledge Booster
Similar questions
- Attached below is the Balance Sheet of GoodWorld Incorporated Company. Calculate the WACC for the company by using the capital Structure value from the balance sheet. Use the format below to answer your question. Capital Structure 1.Common Stock 2.Preferred Stock 3.Loans / LT debt /Bond 4.Retained Earnings Total ASSETS Current Assets Cash and Cash Equivalents Accounts Receivable Inventory Prepaid Expenses Investment Total Current Assets Amount in Balance Sheet Calculate the WACC: Balance Sheet of GoodWorld Incorporated Company Good World Incorporated Balance Sheet 31-Dec-22 Property & Equipment Land Buildings Equipment Less: Accumulated Depreciation Other Assets Intangible Assets Less: Accumulated Amortization Total Assets $'000 200,000 30,000 20,000 10,000 20,000 280,000 120,000 450,000 100,000 -30,000 40,000 -10,000 Cost 950,000 12% 10% 14% 12% Proposition LIABILITIES & SHAREHOLDERS EQUITY Current Liabilities Accounts Payable Notes Payables Accrued Expenses Deferred Revenue Total…arrow_forwardThe current ratio isa. calculated by dividing current liabilities by current assets. b. used to evaluate a company's liquidity and short-term debt paying ability c. used to evaluate a company's solvency and long-term debt paying ability. d. calculated by subtracting current liabilities from current assets.arrow_forwardThe statement of financial position of Trend, Inc. is presented below. These are the only accounts in Trend's statement of financial position. Amounts indicated by question mark (?) can be calculated from the additional information given Cash Accounts rereivahle(net) Inventory Property. Dant and equipment (net ota LIabilitieS and Stockholders Equity Accounts Davable trade Income taxes Davable (current) Long-term debt Common stock Retained earnings Total Additional Information Gurrent ratio (at vear end) Total liabilities divided by total stockholders' equity 25,000 294,000 432,000 25.000 300.000 slavento turnover based on sales and ending inventor Inventor turnover based on cost of goods sold and ending inventory Gross margin for the year 1,5 to 1 0.8 15 times 10.5 times P315,000 What was rend' balance in trade accounts payable at year-end? What was Trend's balance in retained earnings at year-end? Was rends Dalance in the inventory account at year-end? The balance of Accounts…arrow_forward
- Use the following information from XYZ Company's balance sheet to answer the next six questions: Assets a. b. c. d. a. b. 30. C. d. Cash........ Marketable Securities Accounts Receivable Inventory........ Property and Equipment. Accumulated Depreciation. Total Assets a. b. c. d. Liabilities and Stockholders' Equity Accounts Payable. Notes Payable (current). Mortgage Payable (long-term). Bonds Payable (long-term). Common Stock, $50 Par.. The average number of common stock shares outstanding during the year was 840 shares. Net earnings for the year were $6,300. 25. XYZ's current ratio is 6.0 to 1. 5.5 to 1. 26. XYZ's quick (acid-test) ratio is 4.0 to 1. 4.5 to 1. 3.5 to 1. 3.0 to 1. Paid-in Capital in Excess of Par......... Retained Earnings............ Total Liabilities, and Stockholders' Equity 4.0 to 1. 4.5 to 1. ***** 27. XYZ's earnings per share is $7.50 per share. $7.00 per share. $0.13 per share. $6,300 per share. 28. XYZ's return on assets is a. 6.9% b. 7.9% C. 14.6% d. 23.4% 29.…arrow_forwardIdentifying and Classifying Financial Statement Items For each of the following items, indicate whether they would be reported in the balance sheet (B) or income statement (1). (a) Machinery (b) Supplies expense (c) Inventories (d) Sales (e) Common stock (f) Factory buildings (g) Receivables (h) Taxes payable (i) Taxes expense (i) Cost of goods sold (k) Long-term debt (1) Treasury stock ◆ ◆ ◆ ♦ ♦ ◆ ◆ ♦ ♦arrow_forward3. The financial statements of Mugs Company appear below: MUGS COMPANY Comparative Balance Sheet Assets Cash. Marketable securities Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets. Liabilities and stockholders' equity Accounts payable. Short-term notes payable. Bonds payable. Common stock. Retained earnings. Total liabilities and stockholders' equity. Net sales Cost of goods sold Gross profit. Expenses Interest expense Page 8 of 9 FINANCIAL STATEMENT ANALYIS Selling expenses Administrative expenses. Total expenses. Income before income taxes Income tax expense. Net income. MUGS COMPANY Income Statement For the Year Ended December 31, 2015 c. d. Net cash provided by operating activities for 2015 was P65,000. ManEco-01 2 Hetamron common stocanoiders equity 6. 7. 9. Times interest earned_ Profit margin ratio. Payout ratio. 10. Return on assets. 11. Cash debt coverage ratio. 2015 P 25,000 20,000 40,000 150,000 170.000 P405,000 P 25,000 40,000 75,000…arrow_forward
- 3. The financial statements of Mugs Company appear below: MUGS COMPANY Comparative Balance Sheet Assets Cash. Marketable securities Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets. Liabilities and stockholders' equity Accounts payable. Short-term notes payable. Bonds payable. Common stock. Retained earnings. Total liabilities and stockholders' equity. Net sales Cost of goods sold Gross profit. Expenses Interest expense Page 8 of 9 FINANCIAL STATEMENT ANALYIS Selling expenses Administrative expenses. Total expenses. Income before income taxes Income tax expense. Net income. MUGS COMPANY Income Statement For the Year Ended December 31, 2015 c. d. Net cash provided by operating activities for 2015 was P65,000. 2 HOT on common senolders equity O arred ratio ManEco-01 2015 P 25,000 20,000 40,000 uratio 10. Return on assets 11. Cash debt coverage ratio. 150,000 170.000 P405,000 P 25,000 40,000 75,000 175,000 90,000 P405,000 P21,000 30,000 20,000 2014 P…arrow_forward3. The financial statements of Mugs Company appear below: MUGS COMPANY Comparative Balance Sheet Assets Cash. Marketable securities Accounts receivable (net) Inventory Property, plant and equipment (net) Total assets. Liabilities and stockholders' equity Accounts payable Short-term notes payable. Bonds payable. Common stock Retained earnings Total liabilities and stockholders' equity. Net sales Cost of goods sold Gross profit Expenses Interest expense Page 8 of 9. MUGS COMPANY Income Statement For the Year Ended December 31, 2015 FINANCIAL STATEMENT ANALYIS Selling expenses Administrative expenses Total expenses Income before income taxes Income tax expense Net income ManEco-01 2015 P 25,000 20,000 40,000 150,000 170,000 P405,000 P 25,000 40,000 75,000 175,000 90,000 P405,000 P21,000 30,000 20,000 2014 P 40,000 60,000 30,000 170,000 200,000 P500,000 shares. C. Market value of common stock on December 31, 2015, was P15 per share.. d. Net cash provided by operating activities for 2015…arrow_forwardAssume that Fielder Enterprises uses the following headings on its balance sheet. a. Current assets. b. Investments. c. Property, plant, and equipment. d. Intangible assets. e. Other assets. f. Current liabilities. g. Long-term liabilities. h. Capital stock. i. Equity attributed to noncontrolling interest. j. Paid-in capital in excess of par. k. Retained earnings. Instructions Indicate by letter how each of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter “N” to indicate this fact. If an item need not be reported at all on the balance sheet, use the letter “X.” 1. Prepaid insurance. 2. Stock owned in affiliated companies. 3. Unearned service revenue. 4. Advances to suppliers. 5. Unearned rent revenue. 6. Preferred stock. 7. Additional paid-in capital on preferred stock. 8. Copyrights. 9. Petty cash fund. 10. Sales taxes payable. 11. Accrued…arrow_forward
- Presented below are a number of balance sheet accounts of Deep Blue Something, Inc. a. Debt Investments. b. Treasury Stock. c. Common Stock. d. Dividends Payable. e. Accumulated Depreciation—Equipment. f. Construction in Process. g. Petty Cash. h. Interest Payable. i. Deficit. j. Equity Investments (ownership stake of less than 20%). k. Income Taxes Payable. l. Unearned Subscriptions Revenue. m. Work in Process. n. Salaries and Wages Payable. Instructions For each of the accounts above, indicate the proper balance sheet classification. In the case of borderline items, indicate the additional information that would be required to determine the proper classification.arrow_forward(Classification of Balance Sheet Accounts) Assume that Fielder Enterprises uses the following headings on its balance sheet. a. Current assets.b. Long-term Investments.c. Property, plant, and equipment.d. Intangible assets.e. Other assets.f. Current liabilities.g. Long-term liabilities.h. Capital stock.i. Paid-in capital in excess of par.j. Retained earnings. Instructions:Indicate by letter how each of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter “N” to indicate this fact. If an item need not be reported at all on the balance sheet, use the letter “X.” 1. Prepaid insurance.2. Stock owned in another company.3. Unearned service revenue.4. Advances to suppliers.5. Unearned rent revenue.6. Preferred stock.7. Additional paid-in capital on preferred stock.8. Copyrights.9. Petty cash fund.10. Sales taxes payable.11. Accrued interest on notes receivable.12. Twenty-year issue of bonds payable that will mature within…arrow_forwardBalance Sheet ClassificationA balance sheet contains the following classifications:(a) Current assets (g) Long-term debt(b) Investments (h) Other noncurrent liabilities(c) Property, plant, and equipment (i) Capital stock(d) Intangible assets (j) Additional paid-in capital(e) Other noncurrent assets (k) Retained earnings(f) Current liabilitiesIndicate by letter how each of the following accounts would be classified. Place a minus sign (–) for all accounts representing offset or contra balances. 1. Discount on Bonds Payable 2. Stock of Subsidiary Corporation 3. 12% Bonds Payable (due in 6 months)arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,