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