Balance sheet multiple choice



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ANS:



Butler Corporation

Balance Sheet



December 31, 2010













Assets










Current Assets:










   Cash




$ 6,200 




   Marketable Securities




7,000 




   Accounts Receivable

$13,000 







  Less: Allowance for Doubtful Accounts

(2,000)

11,000 




   Inventory




30,000 




     Total Current Assets







$ 54,200













Tangible Assets:










   Land




$ 7,000 




   Equipment

$17,000 







   Less: Accumulated Depreciation—Equipment

(5,000)

12,000 




   Buildings

45,000 







   Less: Accumulated Depreciation—Buildings

(10,000)

35,000 

54,000













Investments:










    Investment in Bonds







8,000













Intangibles:










   Trademarks




$ 5,000 




   Organization Costs




 4,000 

  9,000

Total Assets







$125,200













Liabilities and Stockholders' Equity










Current Liabilities:










   Accounts Payable




$15,000 




   Wages Payable




2,000 




   Current Taxes Payable




 4,000 




     Total Current Liabilities







$ 21,000













Long-Term Debt:










   Notes Payable—Long-Term




$10,000 




   Bonds Payable

$60,000 







   Less: Discount on Bonds Payable

(2,000)

58,000 




     Total Long-Term Debt







68,000













Owners' Equity:










   Common Stock




31,200 




   Premium on Common Stock




3,000 




   Retained Earnings




12,000 




   Treasury Stock




(10,000)

  36,200

Total Liabilities and Stockholders' Equity







$125,200

7. Required:

Using the information given below, prepare a classified balance sheet in good form for Babic Company at December 31, 2010.


Accounts Payable

$   83,000

Accounts Receivable

109,000

Accrued Liabilities

22,000

Accumulated Depreciation

326,000

Cash

32,000

Common Stock

107,000

Convertible Debentures

561,000

Deferred Income Taxes (long-term liability)

117,000

Equipment

1,070,000

Inventory

146,000

Land

917,000

Marketable Securities

11,000

Paid-In Capital in Excess of Par

141,000

Retained Earnings

952,000

Treasury Stock

24,000

ANS:



Babic Company

Balance Sheet



December 31, 2010

Assets










Current Assets:










   Cash







$  32,000

   Marketable Securities







11,000

   Accounts Receivable







109,000

   Inventory







 146,000

     Total Current Assets







$ 298,000













Tangible Assets:










   Land




$  917,000 




   Equipment

$1,070,000 







   Less: Accumulated Depreciation

 (326,000)

  744,000 

1,661,000

Total Assets







$1,959,000
















Liabilities and Stockholders' Equity










Current Liabilities:










   Accounts Payable




$   83,000 




   Accrued Liabilities




22,000 




     Total Current Liabilities







$  105,000

Convertible Debentures







561,000

Deferred Income Taxes







117,000













Stockholders' Equity:










   Common Stock




$  107,000 




   Paid-In Capital in Excess of Par




141,000 




   Retained Earnings




  952,000 










$1,200,000 




Less: Treasury Stock




 (24,000)

1,176,000

Total Liabilities and Stockholders' Equity







$1,959,000

8. Required:



Match each account to the proper account description by placing the appropriate letter before the account name; not all letters will be used.





     Account

____ 1.

Accounts Payable

____ 2.

Accounts Receivable

____ 3.

Accrued Liabilities

____ 4.

Accumulated Depreciation

____ 5.

Cash

____ 6.

Common Stock

____ 7.

Convertible Debentures

____ 8.

Deferred Income Taxes (liability)

____ 9.

Equipment

____ 10.

Inventory

____ 11.

Land

____ 12.

Marketable Securities

____ 13.

Minority Interest

____ 14.

Paid-In Capital in Excess of Par

____ 15.

Retained Earnings

____ 16.

Treasury Stock



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