… Accounts receivable 275,000 . 3. Bonds payable (9.4%, due in 2027) 800,000. Required: For each of the following 2018 balance sheet items, use the letters above to indicate the appropriate classification category. 7. Provide a separate line item for each issue (do not combine separate bonds or notes payable), but some items may need to be split into more than one item. 4. Prepare an income statement for the period ended January 31, 2021. Other assets Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. HW5 Q3: The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation. Prepare the current liabilities and long-term debt portions of Fridley’s balance sheet at December 31, 2020. Prepare a classified balance sheet as of January 31, 2021. The following are the typical classifications used in a balance sheet: a. Subtract the value for the first year from the second. (If the item is a contra account, select the appropriate letter with a minus sign.) Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2021. D) $1,200. f. Current liabilities. An example of a classified balance sheet can be found in the Concept Review … 2. Exercise 5-2 Presented below are the captions of Faulk Company's balance sheet. Equipment 5. For each of the items not included in your answer to requirement 1, explain the correct classification of the item. A letter may be used more than once or not at all. 5. With a … 8 years ago. Cash equivalents 3. Accounts payable 2. The first one is done for you. g. Long-term liabilities. Lease liability* 41,500. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2021 balance sheet. 5. Equipment 2. The following items, at a minimum, are normally found in a balance sheet: Current Assets: Cash and cash equivalents. 3. There are some questions as to the proper classification of the following items: $70,000 in cash restricted in a savings account to pay bonds payable. Asset Section. Balance sheet account changes are the basic building blocks for preparing a statement of cash flows. Note payable, due in 5 years 6. Trade and other receivables. Required: For each of the following 2018 balance sheet items, use the letters above to indicate the appropriate classification category. Textbook solution for Financial Accounting: The Impact on Decision Makers… 10th Edition Gary A. Porter Chapter 1 Problem 1.3P. Liabilities are items which would likely decrease the revenue for the company. B) $54,800. On the basis of the following data related to assets due within one year for Webb Co., prepare a partial balance sheet in good form at December 31, 2009. Equity investments (to be sold in the next year). 5. C) $52,400. Land, held for investment 5. Prepare an adjusted trial balance as of January 31, 2021, after updating beginning balances (above) for transactions during January (requirement 1) and adjusting entries at the end of January (requirement 2). Common Balance Sheet Classifications. 1 Answer. Prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. Start with the first two years you have balance sheets for. 6. $ 62,500. Usually companies prepare an official balance sheet quarterly ( the last day of March, June, September and December, for example) and at the end of their fiscal year (such as December 31) but it can be done at any time. Identify the financial statement on which each of the following items appears by making an X in the appropriate column. 3. Review the adjusted ‘Trial Balance’ as of January 31, 2021, in the ‘Trial Balance’ tab. Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. If an item can be classified in more than one category, choose the category most favored by the authors of your textbook. Allowance for uncollectible accounts A. After completing your review, you list the following three items for discussion with your superior: 1. Review the ‘General Ledger’ and the ‘Trial Balance’ tabs to see the effect of the transactions on the account balances. e. Other assets. Interest receivable 1,000. There is no specific requirement for the classifications to be included in the balance sheet. Prepaid rent of $44,000, covering the period January 1, 2022, through December 31, 2023. 2. Current assets. Required: 1. Current maturity of long-term debt. Cash 128. Retained earnings For each of the following balance sheet items, use the letters above to indicate the appropriate classificatio 1. The Foundation Years website is the best place to find information and support if you work in the early years and childcare delivering services for children and families. Show total current assets. Go to the first item, current assets. Let’s look at each of the balance sheet accounts and how they are reported. Exploration expenses 6. 2. Calculate the amount of revenue and gross profit to be recognized in each of the three years assuming the following costs incurred and costs to complete information: 5. If the item is a contra account, place a minus sign before the chosen letter. Ideally, a balance sheet would have the following components:- “Assets, Liabilities, and Owner’s Equity.” Assets are items that would likely increase or generate revenue for the company—examples: cash, receivables, inventory, prepaid expenses, and fixed assets, etc. Retained earnings For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. An investment of $30,000 is included in current assets. What was the cost of supplies the Cal Farms purchased during the year? Assuming no other deferred tax items exist in a particular year, a net operating loss (NOL) carryforward will be shown in the balance sheet at the end of the NOL year as: A noncurrent deferred tax asset. To do a horizontal analysis, you will need the condensed balance sheets for the company that cover the years in question. Record the adjusting entries in the 'General Journal' tab (these are shown as items 10-12) 3. Review the adjusted 'Trial Balance' as of December 31, 2021. Salaries and wages payable 4. It compares each line of the balance sheet from year to year in terms of percentage change. b. Accounts payable F. 3. For each of the following items, identify whether they would most likely be reported in the balance sheet (B) or income statement (I). The asset section is organized from current to non-current and broken down into two or three subcategories. (If the item is a contra account, select the appropriate letter with a minus sign.) 8. Similar to the accounting equation, assets are always listed first. Unearned rent revenue F. **INTANGIBLES ARE ALWAYS LT A 7. The bonds mature in 2025. For each of the following 2018 balance sheet items, use the letters above to indicate the appropriate classification category. Land, held for investment B. 5. C. Cal Farms reported supplies expense of $2,000,000 this year. Use the following information to forecast a balance sheet for. 4. The following is a December 31, 2021, post-closing trial balance for the Jackson Corporation. You have been asked to review the December 31, 2021, balance sheet for Champion Cleaning. Notes payable of $240,000. The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. Allowance for doubtful accounts 25,000. Accounts receivable in the 2021 balance sheet will be valued at: A) $53,600. Accounts payable 5. We have step-by-step solutions for your textbooks written by Bartleby experts! 1. Accounts payable 3. 4. Management has indicated that it has no intention of liquidating the investment in 2022. The broad range of information accessible on this site is developed by government, professionals and the voluntary and community sector and is continually updated with the latest news, information and resources. Deferred rent revenue 7. Answer Save. h. Paid-in-capital. d. Intangible assets. Goodwill. Investments and funds. an operation that Company A is starting in the U.S. on January 1, 2021 (round each element to the nearest thousand dollars). i. If an item need not be reported on the balance sheet, use the letter "X." 2. B) $1,800,000. Include headings for each classification, as well as titles for each classification’s subtotal. J. Lv 4. C) $2,200,000. Relevance. Inventories. The company wants to sell Canadian-made high-end men's clothing via a wholly owned U.S. subsidiary company. The balance sheet is in good shape, with an investment-grade credit rating of BBB from Standard & Poor’s and limited maturities through 2022. Identify the financial statement (balance sheet or income statement) in which each item would appear. (If the item is a contra account, select the appropriate letter with a minus sign.) Allowance for uncollectible accounts 4. Note payable, due in 5 years G. 6. *Purchased on 11/30/2021. Crude oil inventory 4. The balance sheet is created to show the assets, liabilities, and equity of a company on a specific day of the year. Off-balance sheet (OBS) financing is an accounting practice whereby a company does not include a liability on its balance sheet.. Question 4 The following are the typical classifications used in a balance sheet: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. Investments. 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