1

1. USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6) QUESTIONS: The following is a December 31, 2016, post-closing trial balance for Excell Company:

   Account Title	Debits	Credits
   Cash	$ 83,000
   Accounts Receivable (net of Allowance)	$280,000
   Prepaid Expenses	$ 32,000
   Investments	$ 65,000
   Land	$175,000
   Buildings (net)	$160,000
   Equipment (net)	$145,000
   Accounts payable		$ 73,000
   Accrued expenses payable		$ 45,000
   Unearned Revenue		$150,000
   Notes payable		$300,000
   Common Stock		$200,000
   Retained Earnings		$172,000
   TOTALS	$940,000	$940,000

   Additional Information: 1. The cash account includes $22,000 set aside in a legally restricted fund to pay bonds payable that mature in 2024, a $15,000 cash surrender value of a life insurance policy on the company's CEO, and $2,000 in petty cash. 2. The accounts receivable balance consists of the following: a. Amounts owed by customers with debit balances $ 227,600 b. Customer accounts withcredit balances 10,500 c. Allowance for uncollectible accounts - trade customers (9,400) d. Non-trade note receivable due in three equal payments on June 25 over the next 3 years 64,500 e. Interest receivable on note due in nine months 7,800 Total $ 280,000

   3. The prepaid expenses includes $18,000 that will be consumed during 2017 and $14,000 that will be consumed during 2018.

   4. The investments account is classified as Available for Sale Securities and includes an investment of $25,000 in bonds that mature July 1, 2017. Of the remaining investments balance, management intends to hold for at least the next three years. All investments in the portfolio have already been marked-to-market and are reported at Fair Value.

   5. The land account includes land which cost $75,000 that the company purchased for speculative purposes and is currently held for sale. The remaining $100,000 is the cost of land on which the company's office building resides. The equipment account includes idle machinery with a book value of $45,000. 6. The unearned revenue represents customer prepayments for magazine subscriptions. Subscriptions are for five years and will be earned evenly over each of the years beginning January 1, 2017. 7. The notes payable account consists of the following: a. a $50,000 note due in six months. b. a $100,000 bond due in eight years. c. a $150,000 note due in six annual installments of $25,000 each, with the next installment due Nov. 1, 2017. *Interest on all notes has been properly accrued and is included in accrued expenses. Required:After all corrections have been made, determine the correct amount ofCurrent Assets:

0.9 points

QUESTION 2

1. Using the information in #1 above, determine Total Long-Term Investments (after all corrections and adjustments have been made):

0.9 points

QUESTION 3

1. Using the information from #1 above, determine Total PP&E (net) after all adjustments and corrections have been made:

0.9 points

QUESTION 4

1. Using the information in #1 above, determine the Total Other Assets after all corrections have been made:

0.9 points

QUESTION 5

1. Using the information presented in #1 above, determine Total Current Liabilities after all corrections have been made:

1 points

QUESTION 6

1. Using the information in #1 above, determine Total Long-Term Liabilities after all corrections have been made:

0.9 points

QUESTION 7

1. Using the letters below, classify the following accounts according to the preferred and ordinary balance sheet presentation by matching the letter to the description. The company's year-end is December 31, 2015. (You can use a letter more than one time)

   Assets	Liabilities	Equity
   A. Current Assets	F. Current Liabilities	H. Equity
   B. Long-Term Investments	G. Long-Term Liabilities	I. Items not reported on the Balance Sheet
   C. Plant Property & Equipment (PP&E)
   D. Intangibles
   E. Other Assets

   If the account is a contra account, be sure to but brackets < > around the letter. For instance, if the account is a contra intangible, then you would answer:

   1.Bond Sinking Fund. The Bond matures on November 30, 2019.

   2.TradingSecurities

   3.The long-term portion of an insurance policy paid for in advanceproviding three years of coverage.

   4.Tradename

   5.Surrender value of Life Insurance policy on key executives.

   6.Accrued Expenses Payable

   7.Goodwill generated internally.

   8.Discount on Bonds Payable due in 7 years.

   9.Non-controlling interest

   10. Other Comprehensive Income

   11. Allowance for Doubtful Accounts

   12. The undistributed portion of a company's earnings.

3 points

QUESTION 8

1. Presented below are changes in the account balances of Al-Othman Company during the year, except for Retained Earnings. The only entries in Retained Earnings were for net income and dividends. Al-Othman declared dividends of $8,250 and paid dividends of $11,000 during the year. Calculate Net Income.

   Account	Change during year
   Cash	$81,000
   Accounts payable	34,000
   Accounts receivable (net)	30,000
   Accrued Expenses	27,000
   Accumulated OCI	-19,000
   Additional paid-in capital	16,000
   Bonds payable	-20,000
   Common stock	72,000
   Held-to-Maturity Bonds	-15,000
   Inventory	42,000
   Long Term Prepaids	21,000
   Non controlling Interest	-2,000
   Plant Assets (net)	-25,000
   Unearned Revenues	-13,000

1.5 points