Financial Accounting Ch.2
1411 words
6 pages
E2-1, 2,5,7; P2-2A, 4AE2-1. The following are the major balance sheet classifications:
Current assets (CA
Long-term investments (LTI)
Property, plant and equipment (PPE)
Intangible assets (IA)
Current liabilities (CL)
Long-term liabilities (LTL)
Stockholders’ equity (SE)
Classify each of the following financial statement items taken from Mordica Corporation’s balance sheet.
CL Accounts payable
CA Accounts receivable
PPE Accounts depreciation-equipment
PPE Buildings
CA Cash
CL Interest payable
IA Goodwill
CL Income taxes payable
CL Inventory
CA Stock investments (to be sold in 7 months)
PPE Land (in use)
LTL Mortgage payable
CA Supplies
PPE Equipment
CA Prepaid rent
E2-2. Classify each of the following …show more content…
Tresh Corporation
Income Statement
For the Year Ended December 31, 2014
Tresh Corporation
Retained Earnings Statement
For the Year Ended December 31, 2014
Retained earnings, January 1, 2014
$31,000
Add: Net income
21,400
52,400
Less: Dividends
12,000
Retained Earnings December 31, 2014
$40,400
P2-2 (continued)
Tresh Corporation
Balance Sheet
December 31, 2014
Assets
Current Assets
Cash
$10,100
Accounts receivable
11,700
Prepaid insurance
3,500
Total current assets
$25,300
Property, plant, equipment
Equipment
$66,000
Less: Accumulated depreciation-equipment
17,600
48,400
Total assets
$73,700
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$18,300
Salary and wages payable
3,000
Total liabilities
$21,300
Stockholders' equity
Common stock
12,000
Retained earnings
40,400
Total