Assume that Masters Enterprises uses the following headings on its statement of financial position. (a) Investments. (g)
Question:
Assume that Masters Enterprises uses the following headings on its statement of financial position.
(a) Investments. (g) Current liabilities.
(b) Property, plant, and equipment. (h) Share capital.
(c) Intangible assets. (i) Share premium.
(d) Other assets. (j) Retained earnings.
(e) Current assets. (k) Accumulated other comprehensive income.
(f) Non-current liabilities.
Instructions Indicate by letter how each of the following usually should be classified. If an item should appear in a note to the financial statements, use the letter “N” to indicate this fact. If an item need not be reported at all on the statement of financial position, use the letter “X.”
1. Prepaid insurance.
2. Shares owned in associated companies.
3. Unearned service revenue.
4. Advances to suppliers.
5. Unearned rent revenue.
6. Share capital—preference.
7. Share premium—preference.
8. Copyrights.
9. Petty cash fund.
10. Sales taxes payable.
11. Interest on notes receivable.
12. Twenty-year bonds payable that will mature within the next year. (No sinking fund exists, and refunding is not planned.)
13. Accounts receivable.
14. Unrealized gain on non-trading equity securities.
15. Interest on bonds payable.
16. Salaries that company budget shows will be paid to employees within the next year.
17. Accumulated depreciation—equipment.
Step by Step Answer:
Intermediate Accounting IFRS Edition
ISBN: 9781118443965
2nd Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield