1. Blues Corporation's trial balance included the following account balances at December 31, 2011: Accounts Payable ........................................ $45,000 Bonds Payable, due 2012 ................................. 75,000 Discount on Bonds Payable, due 2012 ..................... 9,000 Dividends Payable January 31, 2012 ...................... 24,000 Notes Payable, due January 31, 2015 ..................... 60,000 What amount should be included in the current liability section of Blues' December 31, 2011, balance sheet? a. $135,000 b. $153,000 c. $195,000 d. $234,000 2. Information from Blain Company's balance sheet is as follows: Current assets: Cash .................................................... $ 1,200,000 Investment securities ................................... 3,750,000 Accounts receivable ..................................... 28,800,000 Inventories ............................................. 33,150,000 Prepaid expenses ........................................ 600,000 Total current assets .................................... $67,500,000 Current liabilities: Notes payable ........................................... $ 750,000 Accounts payable ........................................ 9,750,000 Accrued expenses ........................................ 6,250,000 Income taxes payable .................................... 250,000 Payments due within one year on long-term debt .......... 1,750,000 Total current liabilities ............................. $18,750,000 What is Blain's quick (acid-test) ratio? a. 0.26 to 1 b. 0.30 to 1 c. 1.80 to 1 d. 3.60 to 1 3. Information from Blain Company's balance sheet is as follows: Current assets: Current assets: Cash .................................................... $ 1,200,000 Investment securities ................................... 3,750,000 Accounts receivable ..................................... 28,800,000 Inventories ............................................. 33,150,000 Prepaid expenses ........................................ 600,000 Total current assets .................................... $67,500,000 Current liabilities: Notes payable ........................................... $ 750,000 Accounts payable ........................................ 9,750,000 Accrued expenses ........................................ 6,250,000 Income taxes payable .................................... 250,000 Payments due within one year on long-term debt .......... 1,750,000 Total current liabilities ............................... $18,750,000 What is Blain's current ratio? a. 0.26 to 1 b. 0.30 to 1 c. 1.80 to 1 d. 3.60 to 1 4. Treasury stock should be reported a. as a current asset only if it will be sold within the next year or the operating cycle, whichever is longer. b. as a current asset only if it will be sold within the next year or the operating cycle, whichever is shorter. c. in the Investments and Funds section of the balance sheet. d. as a deduction from total stockholders' equity on the balance sheet. 5. Account balances and supplemental information for the Bighorn Corporation as of December 31, 2012, are given below: Accounts Payable ....................................... $ 75,900 Accounts Receivable .................................... 141,600 Accumulated Depreciation--Equipment .................... 84,000 Bonds Payable .......................................... 300,000 Cash ................................................... 243,900 Common Stock ........................................... 1,560,000 Deferred Income Tax Liability (noncurrent) ............. 6,900 Dividends Payable ...................................... 45,000 Equipment .............................................. 840,000 Income Taxes Payable ................................... 91,500 Inventory .............................................. 395,100 Investment in Land ..................................... 510,000 Investment in Stock of Subsidiary ...................... 492,000 Note Payable ........................................... 120,000 Notes Receivable ....................................... 150,000 Prepaid Insurance ...................................... 7,200 Retained Earnings ...................................... 453,600 Salaries and Wages Payable ............................. 42,900 (a) $300,000 of 12% bonds were sold on November 1, 2012, at par. (b) 40,000 shares of $30 par value common stock were sold for $1,560,000. (c) All the equipment was purchased on January 2, 2011. The depreciation rate is 10 percent per year. (d) 5 percent of accounts receivable are expected to be uncollectible. (e) A two-year insurance policy was purchased on May 1, 2012, for $7,200. (f) Accrued interest on $150,000 of short-term notes receivable from customers was $5,100 at December 31, 2012. (g) $120,000 was borrowed from the bank on a 5-year, 10% note payable dated July 1, 2012. The loan is to be repaid in 10 semiannual payments of $12,000 plus interest, with the first payment due January 1, 2013. Prepare a properly classified balance sheet in report form for Bighorn Corporation as of December 31, 2012