46511679 Balance Sheet Valix C1Valix PDF

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PRACTICAL ACCOUNTING 1BALANCE SHEETBogo Company trial balance reflected the following account balances at December 31, 2006: Accounts receivable 1,600, Trading securities 500, Accumulated depreciation on equipment and furniture 1,500, Cash 1,100, Inventory of merchandise 3,000, Equipment and furnitu...

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PRACTI CALACCOUNTI NG 1 BALANCE SHEET BogoCompanyt r i albal ancer eflec t ed t hef ol l owi ngacc ountbal anc esat Dec ember31,2006: Ac count sr ec ei vabl e 1, 600, 000 Tr adi ngsec ur i t i es 500, 000 Ac cumul at eddepr eci at i ononequi pmentandf ur ni t ur e 1, 500, 000 Cash 1, 100, 000 I nv ent or yofmer chandi se 3, 000, 000 Equi pmentandf ur ni t ur e 2, 500, 000 Pat ent 400, 000 Pr epai dexpenses 100, 000 Landhel df orf ut ur ebusi nes ssi t e 1, 800, 000 1.I n BogoCompany’ sDecember31,2006bal anc eshe et ,t hecur r ent asse t st ot ali s a.8, 100, 000 b.7, 300, 000 c.6, 700, 000 d.6, 300, 000 Thef ol l owi ngi nf or mat i onper t ai nst oAl enaCompanyonDec ember31of t hecur r entye ar : Pr oper t y ,pl antandequi pment 35, 000, 000 Ac count sr ecei vabl e 20, 000, 000 Pr epai di nsur anc e 2, 500, 000 Shor t t er m not epayabl e 3, 000, 000 Cash 5, 000, 000 Bondspayabl e 40, 000, 000 Tot alasse t s 101, 500, 000 Land 20, 000, 000 Ac count spayabl e 8, 000, 000 Al l owanc ef ordoubt f ulaccount s 1, 000, 000 Mer chandi sei nv ent or y 13, 000, 000 Avai l abl ef orsal esecur i t i es–t obehe l di nde fini t e l y 7, 000, 000 Wagespayabl e 2, 000, 000 Tot all i abi l i t i es 56, 000, 000 Pr emi um onbondspayabl e 3, 000, 000 2.TheDecember31wor ki ngcapi t ali s a.46, 500, 000 b.33, 500, 000 c.26, 500, 000 d.35, 500, 000 Ri ceCompany wasi ncor por at ed on Januar y1,2006,wi t h P5, 000, 000 f r om t hei ssuanceofst oc k and bor r owed f undsofP1, 500, 000. Dur i ng t hefir s ty earofoper at i ons ,ne ti nc omewasP2, 500, 000. On Dec ember 15,Ri c epai daP500, 000cashdi vi dend. Noaddi t i onalact i vi t i esaffec t ed owner s’equi t yi n 2006. AtDecember31,2006,Ri c e’ sl i abi l i t i es had i ncr easedt oP1, 800, 000. 3.I n Ri ce’ sDecember31,2006bal anc eshee t ,t ot alasse t sshoul dbe r epor t edat a.6, 500, 000 b.9, 300, 000

c.8, 800, 000 d.6, 800, 000 Mi r rCompanywasi nc or por at ed on Januar y1,2006,wi t h pr oc eeds f r om t he i ssuance ofP7, 500, 000 i ns t ock and bor r owe df unds of P1, 100, 000. Dur i ngt hefir sty earofoper at i on,r eve nuesf r om sal es and consul t i ng amount ed t o P8, 200, 000,and oper at i ng cos t s and expens es t ot al ed P6, 400, 000. On December 15,Mi r r decl ar ed a P300, 000di vi dend,payabl et ost ockhol der sonJanuar y15,2007.No addi t i onalact i vi t i esaffec t ed owner s ’equi t yi n 2006. Mi r r ’ sl i abi l i t i es i ncr easedt oP2, 000, 000byDecember31,2006. 4.OnMi r r ’ sDec ember31,2006bal anc esheet ,t ot alasse t sshoul dbe r epor t edat a.11, 000, 000 b.11, 300, 000 c.10, 100, 000 d.12, 100, 000 Thef ol l owi ngi sGol dCompany’ sJune30,2006,t r i albal anc e: Cashov er dr af t 100, 000 Ac count sr ecei vabl e,ne t 350, 000 I nv ent or y 580, 000 Pr epai dexpenses 120, 000 Landc l assi fiedas“ hel df orsal e” 1, 000, 000 Pr oper t y ,pl antandequi pment ,ne t 950, 000 Ac count spayabl eandaccr uedexpenses 320, 000 Commons t ock 250, 000 Addi t i onalpai di ncapi t al 1, 500, 000 Re t ai nedear ni ngs 830, 000 3, 000, 000 3, 000, 000 Chec ksamount i ngt oP300, 000wer ewr i t t ent ov endor sandr ec or dedon June29, 2006,r esul t i ngi ncashov er dr af tofP100, 000. Thechec kswer e mai l edonJul y9,2006.Landc l assi fiedashel df orsal ewassol df orcash onJul y15,2006. Gol di ssuedi t sfinanci als t at ement sonJul y31,2006. 5.I ni t s June 30,2006 bal anc e shee t ,whatamountshoul d Gol d r epor tascur r entasse t s? a.2, 250, 000 b.2, 050, 000 c.1, 950, 000 d.1, 250, 000 Ar abi an Company’ s Dec ember 31, 2006 bal anc e she et r epor t ed t he f ol l owi ngcur r entasse t s: Cash 4, 000, 000 Ac count sr ecei vabl e 7, 500, 000 I nv ent or y 4, 000, 000 De f er r edt axasse t 1, 200, 000 Equi pmentusedandhel df orr esal e 300, 00 17, 000, 000 Ananal ysi soft heaccount sr ecei vabl edi sc l osedt heaccount sr ecei vabl e compr i sedt hef ol l owi ng Tr adeaccount sr ece i vabl e 5, 000, 000 Al l owanc ef ordoubt f ulaccount s ( 500, 000) Se l l i ngpr i ceofAr abi anCompany’ sunsol dgoodssent

t oTarCompanyon consi gnmentat150% ofcostand excl udedf r om Ar abi an’ sendi ngi nve nt or y

3, 000, 000 7, 500, 000 6.AtDece mber31,2006,t het ot alcur r entasse t sshoul dbe a.16, 000, 000 b.15, 700, 000 c.14, 500, 000 d.14, 800, 000

Thef ol l owi ngdat aper t ai nst oCat i c l anCompanyonDec ember31,2006: Cash,i nc l udi ngsi nki ngf undofP500, 000wi t ht r ust ee 2, 000, 000 Not esr ecei v abl e( P200, 000pl edged) 1, 200, 000 Ac count sr ecei vabl e–unassi gned 3, 000, 000 Ac count sr ecei vabl e–assi gned 800, 000 Not esr ecei v abl edi sc ount ed 700, 000 Equi t yofassi gneei naccount sr ece i vabl eassi gned 500, 000 I nv ent or y ,i ncl udi ngP600, 000 cos tofgoodsi nt r ansi t pur chased FOB des t i nat i on. Thegoodswer er ecei v ed onJanuar y3,2007 2, 800, 000 Al l owanc ef ordoubt f ulaccount s 100, 000 7.How muchcur r entasse t sshoul dbeshowni nt hebal anc eshe eton Dec ember31,2006? a.7, 900, 000 b.8, 000, 000 c.7, 400, 000 d.7, 700, 000 Pr esent ed be l ow ar e account bal anc es and r el at ed i nf or mat i on on Dec ember31,2006f orDae tCompany: Cashandcashequi val ent s 3, 700, 000 Ac coount sr ec ei v abl e 1, 500, 000 Al l owanc ef ordoubt f ulaccount s ( 200, 000) I nv ent or y 2, 000, 000 Pr epai di nsur anc e 300, 000 7, 300, 000  Thecashandcashequi val ent si nc l udet hef ol l owi ng: Cashi nbank,netofbankov er dr af tofP300, 000 Mai nt ai nedi nasepar at ebank 1, 000, 000 Cashse tasi debyt heBoar dofDi r ect or sf ort he Pur chaseofapl antsi t e 2, 000, 000 Pe t t ycash 10, 000 Cashwi t hhel df r om wagesf ori ncomet axofempl oyees 190, 000 Gener alcash 500, 000 3, 700, 000 ========  Theacc ount sr ec ei v abl ebal anc ei ncl udespastdueacc ounti nt he amountofP100, 000onwhi c hal ossof50% i sant i ci pat ed. Theacc ountshoul dbewr i t t enoff.  The mer chandi se i nv ent or yi ncl udes goods hel d on consi gnment amount i ng t o P150, 000 and goods ofP200, 000 pur chased and r ec ei v ed on December31,2006.Nei t heroft hesei t emshav ebeen r ec or dedasapur chase .  The pr epai di ns ur ance i nc l udes cash sur r ender val ue of l i f e i nsur anc eofP50, 000.

8.Theadj us t edbal anc eofcur r entasse t sshoul dbe a.5, 400, 000 b.5, 100, 000 c.5, 300, 000 d.5, 200, 000 The t r i al bal anc e of Mi l l Company i nc l uded t he f ol l owi ng acc ount bal anc esatDecember31,2006: Ac count spayabl e 1, 500, 000 Bondspayabl e ,due2007 2, 500, 000 Di scount sonbondspayabl e2007 300, 000 Di vi de ndspayabl e 800, 000 Not epayabl e,due2008 2, 000, 000 9.Whatamountshoul d be i ncl uded i nt he cur r entl i abi l i t y sec t i on of Mi l l ’ sDec ember31,2006bal anc eshe et ? a.4, 500, 000 b.5, 100, 000 c.6, 500, 000 d.7, 800, 000 Thet r i albal anc eofGarCompanyr eflect edt hef ol l owi ngl i abi l i t yacc ount bal anc esatDecember31,2006: Ac count spayabl e 1, 900, 000 Bondspayabl e 3, 400, 000 De f er r edt axl i abi l i t y 400, 000 Di vi de ndspayabl e 500, 000 I ncomepayabl e 900, 000 Not epayabl e,dueJanuar y31,2007 600, 000 Di scountonbandspayabl e 200, 000 The de f er r ed t ax l i abi l i t yi s based on t empor ar y di ffer enc es t hatwi l l r ev er seequal l yi n2007and2008. 10.I n Gar ’ s Dece mber31,2006 bal anc e shee t ,t he cur r entl i abi l i t i es t ot alwas a.7, 100, 000 b.4, 300, 000 c.3, 900, 000 d.4, 100, 000 Br i t eCompanyhadt hef ol l owi ngl i abi l i t i esatDece mber31,2006: Ac countpayabl e 550, 000 Unsec ur ednot e,8%,dueJul y1,2007 4, 000, 000 Ac cr uedexpenses 350, 000 Cont i ngentl i abi l i t y 450, 000 De f er r edt axl i abi l i t y 250, 000 Se ni orbonds,7%,dueMar c h31,2007 5, 000, 000 Thecont i ngentl i abi l i t yi san acc r ualf orpos si bl el osson aP1, 000, 000 l awsui tfil ed agai nstBr i t e.Br i t e’ sl egalcounc elexpec t st he sui tt o be se t t l ed i n 2007andhasest i mast edt hatBr i t ewi l lbel i abl ef ordamages i nt heamountof450, 000 Thede f er r edt axl i abi l i t yi snotr el at edt oan asse tf orfinanc i alr epor t i ng andi sexpec t edt or ev er sei n2007 11.Whatamountshoul d Br i t er epor ti ni t sDecember31,2006bal anc e shee tf orcur r entl i abi l i t i es ? a.10, 350, 000 b.10, 150, 000

c.9, 900, 000 d.4, 900, 000 Ananal ysi sofBur maCompany’ sl i abi l i t i esdi scl osedt hef ol l owi ng Ac count spayabl e,af t erdeduct i ngdebi tbal anc es I nsuppl i er s’account samount i ngt oP100, 000 4, 000, 000 Ac cr uedexpenses 1, 500, 000 Cr edi tbal anc esofcus t omer s’acc ount s 500, 000 St ockdi vi dendpayabl e 1, 000, 000 Cl ai msf ori ncr easei nwagesandal l owanc eby Empl oyeesoft hecompany ,cov er edi na pendi ngl awsui t 400, 000 Es t i mat edexpensesi nr edeemi ngpr i z ecoupons Pr ese nt edbyc ust omer s 600, 000 12.How muc h shoul d be pr esent ed as t ot alcur r entl i abi l i t i es on t he bal anc eshe et ? a.6, 700, 000 b.6, 600, 000 c.7, 100, 000 d.7, 700, 000 The t r i albal anc e ofBr azi lCompany r eflec t e dt he f ol l owi ng l i abi l i t y accountbal anc esonDecember31,2006: Ac count spayabl e 5, 000, 000 Bondspayabl e ,dueDece mber30,2007 10, 000, 000 Pr emi um onbondspayabl e 500, 000 De f er r edt axl i abi l i t y 2, 500, 000 Di vi de ndspayabl e 4, 500, 000 I ncomet axpayabl e 1, 500, 000 Not epayabl e–bank 4, 000, 000 Thebank not epayabl emat ur eson June30,2007.On Mar ch 1,2007, t he ent i r ebal anc e oft hebank payabl e was r efinanced on a l ongt er m basi s.Br azi l ’ sfinanci als t at ement swer ei ssuedonMar ch31,2007. 13.I ni t s December31,2006,Br azi lCompany shoul dr epor tcur r ent l i abi l i t i esat a.21, 500, 000 b.24, 000, 000 c.25, 500, 000 d.28, 000, 000 The f ol l owi ng i nf or mat i on aboutManc he st er Company i s av ai l abl e at Dec ember31,2006: Empl oyeei ncomet axeswi t hhe l d 900, 000 Cashbal anc eatfir sts t at eBank 2, 500, 000 Cashov er dr af tatHar borBank 1, 300, 000 Ac count sr ecei vabl ewi t hcr edi tbal anc e 750, 000 Es t i mat ed expenses of mee t i ng war r ant i es on mer chandi sepr evi ousl ysol d 500, 000 Es t i mat ed damages as a r esul t of unsat i s f act or y per f or manc eonacont act 1, 500, 000 Ac count spayabl e 3, 000, 000 De f er r ed ser i al bonds, i ss ued at par and bear i ng i nt er estat12%,payabl ei n semi annuali nst al l ment sof

P500, 000 dueApr i l1 and Oc t ober1 ofeac hy ear ,t he l astbondt obepai donOc t ober1,2012.I nt e r esti sal so pai dsemi annual l y . St ockdi vi dendpayabl e

5, 000, 000 2, 000, 000

14. The Dec ember 31, 2006 bal anc e shee t shoul d r epor t cur r ent l i abi l i t i esat a.8, 100, 000 b.7, 950, 000 c.9, 100, 000 d.7, 350, 000 TheDece mber31,2006 bal anc eshee tofEastCompany c ont ai ned t he f ol l owi ngcur r entasse t s: Cash 3, 200, 000 Ac count sr ecei vabl e 2, 000, 000 I nv ent or y 2, 800, 000 De f er r edc har ges 200, 000 8, 200, 000 Anexami nat i onr ev eal edt hatacc ount sr ec ei v abl econsi st edoft he f ol l owi ngi t ems: Cust omer s’acc ount s 1, 420, 000 Empl oyees ’acc ount cur r ent 240, 000 Advancest osubsi di ar y 260, 000 Al l owanc ef orunc ol l ec t i bl eacc ount s ( 120, 000) Cl ai msagai ns tshi pperf orgoodsl os ti nt r ans i t 200, 000 2, 000, 000 15.On December31,2006,EastCompany s houl dr epor tt ot alcur r ent asse t sat a.7, 740, 000 b.7, 780, 000 c.7, 940, 000 d.8, 200, 000 Theunadj ust edcur r entasse t ssec t i onands t ockhol der s’equi t ysec t i onof Uni t edCompanyonDec ember31,2006ar easf ol l ows: Cur r entasse t s Cash 600, 000 Tr adi ng se cur i t i es ( i nc l udi ng P300, 000 of Uni t ed Companycommonst ock) 1, 000, 000 Tr adeaccount sr ece i vabl e 3, 500, 000 I nv ent or y 1, 500, 000 Tot al 6, 600, 000 St ockhol der s’equi t y Commons t ock 5, 000, 000 Re t ai nedear ni ngs 500, 000 Tot al 5, 500, 000 16.I ni t s2006st at ementofs t ockhol der s’equi t y ,Uni t ed’ st ot alamountof s t ockhol der s ’equi t yatDecember31,2006i s a.5, 000, 000 b.5, 500, 000 c.5, 800, 000 d.5, 200, 000

The adjusted trial balance of Zinc Company at December 31, 2006, includes the following account balances: Commons t ock 6, 000, 000 Addi t i onalpai di ncapi t al 1, 000, 000 Tr easur ys t ock,atcos t 500, 000 Ne tunr eal i z edl ossonavai l abl ef orsal esecur i t i es 200, 000 Re t ai nedear ni ngsappr opr i at ed 1, 500, 000 Re t ai nedear ni ngsunappr opr i at ed 2, 000, 000 17.Whatamountshoul d Zi ncr epor tast ot als t ockhol der s’equi t yi ni t s Dec ember31,2006bal anc eshe et ? a.10, 000, 000 b.10, 500, 000 c. 9, 800, 000 d. 9, 300, 000 When pr epar i ng a dr af t ofi t s 2006 bal anc e shee t ,Mont Company r epor t ednetasse t st ot al i ngP8, 750, 000. I nc l udedi nt heasse tsec t i onof t hebal anc eshee twer et hef ol l owi ng: Tr easur y st ock of Mont Company at cos t , whi c h appr oxi mat emar ketval ueonDec ember31 250, 000 I dl emachi ner y 100, 000 Cash sur r ender val ue ofl i f ei nsur anc e on cor por at e exec ut i v es 150, 000 Al l owanc ef ori nv ent or ywr i t edown 200, 000 18. At what amount shoul d Mont ’ s net asse t s be r epor t ed i nt he Dec ember31,2006bal anc eshe et ? a.8, 500, 000 b.8, 400, 000 c.8, 300, 000 d.8, 200, 000 Dur i ng2006,JaneCompanyeng agedi nt hef ol l owi ngt r ansact i ons: Keymanagementper sonne lcompensat i on 2, 000, 000 Sal est oaffil i at edent i t i es 3, 000, 000 19.Whi c h oft het wo t r ansac t i onswoul d bedi sc l ose d asr el at ed par t y t r ansac t i onsi nJane’ s2006financ i alst at ement s ? a.Nei t hert r ans act i on b.TheP2, 000, 000t r ansac t i ononl y c.TheP3, 000, 000t r ans act i ononl y d.Bot ht r ansac t i ons DeanCompanyacqui r ed100% ofMor eyCompanypr i ort o2006.Dur i ng 2006,t hei ndi vi dualcompani esi ncl udedi nt hei rfinanc i alst at ement st he f ol l owi ng: Dean Mor ey Keyofficer s’sal ar i es 750, 000 500, 000 Officer s ’expens es 200, 000 100, 000 Loanst ooffic er s 1, 250, 000 500, 000 I nt er companysal es 1, 500, 000 20.Whatamountshoul d ber epor t ed asr el at ed par t ydi sc l osur ei nt he not est oDean’ s2006consol i dat edfinanci als t at ement s ? a.1, 500, 000 b.1, 550, 000 c.1, 750, 000 d.3, 000, 000...