The following items are to be reported on a balance sheet. 1. Accrued vacation pay 2. Income
Question:
The following items are to be reported on a balance sheet.
1. Accrued vacation pay
2. Income tax instalments paid in excess of the income tax liability on the year’s income
3. Service warranties on appliance sales
4. A bank overdraft
5. Employee payroll deductions unremitted
6. Unpaid bonus to officers
7. A deposit received from a customer to guarantee performance of a contract
8. Sales taxes payable
9. Gift certificates sold to customers but not yet redeemed
10. Premium offers outstanding
11. A royalty fee owing on units produced
12. A personal injury claim pending
13. Current maturities of long-term debts to be paid from current assets
14. Cash dividends declared but unpaid
15. Dividends in arrears on preferred shares
16. Loans from officers
17. GST collected on sales in excess of GST paid on purchases
18. An asset retirement obligation
19. The portion of a credit facility that has been used
Instructions
(a) How would each of the above items be reported on the balance sheet according to private enterprise GAAP? If you identify an item as a liability, indicate whether or not it is a financial liability.
(b) Would your classification of any of the above items change if the balance sheet were prepared according to IFRS?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
a Classifications on balance sheet prepared under PE GAAP 1 Current liability financial liability 2 Current asset 3 Current liability or longterm liab...View the full answer
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
