With a … 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. Retained earnings. 7. Answer Save. (If the item is a contra account, select the appropriate letter with a minus sign.) Choose the date for the balance sheet. Prepare a classified balance sheet as of January 31, 2021. e. Other assets. b. For each of the following items, identify whether they would most likely be reported in the balance sheet (B) or income statement (I). 8 years ago. 5. 5. Indicate where each of the following items would be classified. Salaries and wages payable 4. Cash $128,000. D) $1,200. Lease liability* 41,500. The company wants to sell Canadian-made high-end men's clothing via a wholly owned U.S. subsidiary company. A classified balance sheet is a financial statement that reports asset, liability, and equity accounts in meaningful subcategories for readers’ ease of use. 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. Subtract the value for the first year from the second. 1 Answer. Trade and other receivables. Deferred rent revenue 7. The balance sheet is in good shape, with an investment-grade credit rating of BBB from Standard & Poor’s and limited maturities through 2022. The following are the typical classifications used in a balance sheet: a. 2. Investments. Exploration expenses 6. 1. *Purchased on 11/30/2021. Bonds payable (9.4%, due in 2027) 800,000. 4. Cash equivalents 3. an operation that Company A is starting in the U.S. on January 1, 2021 (round each element to the nearest thousand dollars). The balance sheet is created to show the assets, liabilities, and equity of a company on a specific day of the year. For each of the following 2018 balance sheet items, use the letters above to indicate the appropriate classification category. Crude oil inventory 4. It compares each line of the balance sheet from year to year in terms of percentage change. 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. $ 62,500. 4. Prepare a classified balanced sheet for the Weismuller Publishing Company at December 31, 2021. This structure helps investors and creditors see what assets the company is investing in, being sold, and remain unchanged. Prepaid expenses. 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. Land, held for investment 5. 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. f. Current liabilities. Equipment 5. Note payable, due in 5 years 6. Identify the financial statement (balance sheet or income statement) in which each item would appear. 4. Liabilities are items which would likely decrease the revenue for the company. Preferred stock. Go to the first item, current assets. 2. 4. Record adjusting entries on January 31. in the ‘General Journal’ tab (these are shown as items 8-11). Use the following information to forecast a balance sheet for. 5. c. Property, plant, and equipment. Indicate by letter how each of the following items should be classified. 6. For each of the items not included in your answer to requirement 1, explain the correct classification of the item. 8. Cash 128. 2. The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below. Textbook solution for Financial Accounting: The Impact on Decision Makers… 10th Edition Gary A. Porter Chapter 1 Problem 1.3P. Allowance for doubtful accounts 25,000. Financial Statements Each of the following items is shown in the financial statements of Exxon Mobil Corporation: a. Retained earnings For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. Accounts receivable 275,000 . (If the item is a contra account, select the appropriate letter with a minus sign.) Prepare the current liabilities and long-term debt portions of Fridley’s balance sheet at December 31, 2020. Equity investments (to be sold in the next year). Current maturity of long-term debt. Allowance for uncollectible accounts 4. Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. Show total current assets. The first one is done for you. B) $1,800,000. Indicate whether any of the amounts shown are contract assets or contract liabilities. Accounts receivable in the 2021 balance sheet will be valued at: A) $53,600. C) $2,200,000. A letter may be used more than once or not at all. 3. Allowance for uncollectible accounts A. The following items, at a minimum, are normally found in a balance sheet: Current Assets: Cash and cash equivalents. A) $1,600,000. 4. If an item can be classified in more than one category, choose the category most favored by the authors of your textbook. Inventories. An example of a classified balance sheet can be found in the Concept Review … The following is a December 31, 2021, post-closing trial balance for the Jackson Corporation. Interest receivable 1,000. 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. Identify the financial statement on which each of the following items appears by making an X in the appropriate column. Accounts payable 5. Accounts payable 2. 1. 3. Review the adjusted ‘Trial Balance’ as of January 31, 2021, in the ‘Trial Balance’ tab. Notes receivable 50,000. Let’s look at each of the balance sheet accounts and how they are reported. Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. You have been asked to review the December 31, 2021, balance sheet for Champion Cleaning. Current assets. Off-balance sheet (OBS) financing is an accounting practice whereby a company does not include a liability on its balance sheet.. Accounts payable 3. The bonds mature in 2025. Review the ‘General Ledger’ and the ‘Trial Balance’ tabs to see the effect of the transactions on the account balances. Other assets Required: For each of the following balance sheet items, use the letters above to indicate the appropriate classification category. Relevance. Land, held for investment B. i. 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. Balance sheet account changes are the basic building blocks for preparing a statement of cash flows. B) $54,800. g. Long-term liabilities. HW5 Q3: The following is the ending balances of accounts at December 31, 2018 for the Valley Pump Corporation. After completing your review, you list the following three items for discussion with your superior: 1. 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. J. Lv 4. Prepare an income statement for the period ended January 31, 2021. 1. ____ 1. Required: 1. Prepaid rent of $44,000, covering the period January 1, 2022, through December 31, 2023. Asset Section. d. Intangible assets. Start with the first two years you have balance sheets for. C) $52,400. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab. In other words, it breaks down each of the balance sheet accounts into smaller categories to create a more useful and meaningful report. Common Balance Sheet Classifications. The supplies account decreased by $200,000 during the year to an ending balance of $400,000. Unearned rent revenue F. **INTANGIBLES ARE ALWAYS LT A 7. Accounts payable. 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. 2. To do a horizontal analysis, you will need the condensed balance sheets for the company that cover the years in question. (If the item is a contra account, select the appropriate letter with a minus sign.) Include headings for each classification, as well as titles for each classification’s subtotal. … What was the cost of supplies the Cal Farms purchased during the year? Similar to the accounting equation, assets are always listed first. Accounts payable F. 3. Prepare a partial balance sheet for 2021 and 2022 showing any items related to the contract. 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. Notes payable of $240,000. An investment of $30,000 is included in current assets. We have step-by-step solutions for your textbooks written by Bartleby experts! Goodwill. Balance Sheet Accounts Balance Sheet Classification 1. Required: For each of the following 2018 balance sheet items, use the letters above to indicate the appropriate classification category. Exercise 5-2 Presented below are the captions of Faulk Company's balance sheet. 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. C. Cal Farms reported supplies expense of $2,000,000 this year. Required: For each of the following 2018 balance sheet items, use the letters above to indicate the appropriate classification category. 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). Equipment C. 2. Management has indicated that it has no intention of liquidating the investment in 2022. Buildings. Retained earnings For each of the following balance sheet items, use the letters above to indicate the appropriate classificatio 1. 5. 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