Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. The following items are taken from the financial statements of Cullumber Company at December 31, 2022. Land $196,500 Accounts receivable 21,300 Supplies 10,100 Cash

1. The following items are taken from the financial statements of Cullumber Company at December 31, 2022.

Land $196,500
Accounts receivable 21,300
Supplies 10,100
Cash 12,000
Equipment 83,100
Buildings 261,400
Land improvements 46,250
Notes receivable (due in 2023) 5,100
Accumulated depreciationland improvements 13,100
Common stock 73,500
Retained earnings (December 31, 2022) 502,000
Accumulated depreciationbuildings 34,200
Accounts payable 9,300
Mortgage payable 90,150
Accumulated depreciationequipment 18,700
Interest payable 3,800
Income taxes payable 15,200
Patents 47,100
Investments in stock (long-term) 72,200
Debt investments (short-term) 4,900

A) Prepare a classified balance sheet. Assume that $10,200 of the mortgage payable will be paid in 2023. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings, Equipment and Land Improvements.)

2. These items are taken from the financial statements of Pharoah Company at December 31, 2022.

Buildings $95,220
Accounts receivable 11,340
Prepaid insurance 2,880
Cash 10,656
Equipment 74,160
Land 55,080
Insurance expense 702
Depreciation expense 4,770
Interest expense 2,340
Common stock 54,000
Retained earnings (January 1, 2022) 36,000
Accumulated depreciationbuildings 41,040
Accounts payable 8,550
Notes payable 84,240
Accumulated depreciationequipment 16,848
Interest payable 3,240
Service revenue 13,230

A) Prepare a classified balance sheet. Assume that $12,240 of the note payable will be paid in 2023.

3. You are provided with the following information for Carla Vista Co., effective as of its April 30, 2022, year-end.

Accounts payable $ 880
Accounts receivable 880
Accumulated depreciationequipment 660
Cash 1,220
Common stock 17,400
Cost of goods sold 1,070
Depreciation expense 375
Dividends 340
Equipment 2,570
Goodwill 1,600
Income tax expense 155
Income taxes payable 130
Insurance expense 340
Interest expense 580
Inventory 950
Investment in land 14,240
Land 3,000
Mortgage payable (long-term) 3,300
Notes payable (short-term) 60
Prepaid insurance 50
Retained earnings (beginning) 2,000
Salaries and wages expense 700
Salaries and wages payable 240
Sales revenue 4,600
Stock investments (short-term) 1,200

a) Prepare an income statement for Carla Vista Co. for the year ended April 30, 2022. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

b) Prepare a retained earnings statement for Carla Vista Co. for the year ended April 30, 2022. (List items that increase retained earnings first.

c) Prepare a classified balance sheet for Carla Vista Co. as of April 30, 2022. (List Current Assets in order of liquidity.)

4. Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands, except share information.)

2022 2021

Net sales

$ 1,129,000 $ 1,136,000

Net income (loss)

84,462 70,965

Total assets

855,338 838,078
Share information

Shares outstanding at year-end

69,500,000 71,270,000

Preferred dividends

0 0

There were 78,130,000 shares outstanding at the end of 2020. (a) What was the companys earnings per share for each year? (Round answers to 2 decimal places, e.g. 15.25.)

5. A list of financial statement items for Sunland Company includes the following: accounts receivable $19,600; prepaid insurance $3,640; cash $14,560; supplies $5,320; and debt investments (short-term) $11,480. a) Prepare the current assets section of the balance sheet listing the items in the proper sequence. (List current assets in order of liquidity.)

6. Suppose the following items were taken from the 2022 financial statements of Texas Instruments, Inc. (All dollars are in millions.)

Common stock

$2,250

Accumulated depreciationequipment

$2,150

Prepaid rent

150

Accounts payable

1,230

Equipment

7,100

Patents

2,270

Stock investments (long-term)

710

Notes payable (long-term)

770

Debt investments (short-term)

1,980

Retained earnings

10,050

Income taxes payable

110

Accounts receivable

1,770

Cash

1,490

Inventory

1,090

a) Prepare a classified balance sheet in good form as of December 31, 2022. (List Current Assets in order of liquidity.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An Introduction

Authors: Alex Watson, Jacqui Kew

5th Edition

0190425520, 978-0190425524

More Books

Students also viewed these Accounting questions

Question

What degrees does the program offer?

Answered: 1 week ago

Question

Should civil service employees be allowed to unionize? Why?

Answered: 1 week ago