Answers for Chapter four intermediate accounting 11th edition Nikolai?

Answer 1

Chapter 4

E4-4 - Balance Sheet. (Moderate) Matching various accounts with major sections.

1.

A

2.

G√

3.

I

4.

A

5.

G

6.

D

7.

K√+

8.

I

9.

F

10.

G

11.

D

12.

J√*

13.

F

14.

C

15.

B

+The unrealized decrease is a negative (although not strictly a contra- account) component of Accumulated Other Comprehensive Income.

*Although the letter is checked, the Deficit account is not a contra-account to retained earnings. Instead, it is the title given to a negative retained earnings balance.

E4-8 - Balance Sheet Calculations. (Moderate) Calculate missing information, given amounts of selected balance sheet elements.

DAWSON COMPANY

Balance Sheet

December 31

2010 2011

Current assets $ 26,900(a) $ 25,000

Long-term investments 19,200 22,200(h)

Property, plant, and equipment (net) 85,700 92,800

Intangible assets 10,400 9,200

Total assets $142,200 $149,200(j)

Current liabilities $ 14,500 $ 12,300

Long-term liabilities 35,800(b) 34,900

Total liabilities $ 50,300(d) $ 47,200(i)

Capital stock, $5 par $ 20,000(e) $ 20,000

Additional paid-in capital 15,000 15,000(k)

Total contributed capital $ 35,000(c) $ 35,000(g)

Retained earnings 50,000 60,000

Accumulated other comprehensive income 6,900 7,000

Total stockholders' equity $ 91,900(f) $102,000(l)

Total liabilities & stockholders' equity $142,200 $149,200

E4-10 - Corrections. (Moderate) Preparation of a properly classified balance sheet from one prepared erroneously.

STEVENS COMPANY

Balance Sheet

December 31, 2010

Assets

Current Assets

Cash $ 2,300

Temporary investments in marketable

securities 3,200

Accounts receivable $ 5,900

Less: Allowance for doubtful accounts (800) 5,100

Inventory 6,000

Prepaid items:

Insurance $ 1,200

Office supplies 800 2,000

Total current assets $18,600

Long-Term Investments

Investment in held-to-maturity bonds 10,000

Plant and Equipment

Land $ 8,100

Buildings and equipment $35,600

Less: Accumulated depreciation (9,200) 26,400

Total plant and equipment 34,500

Intangible Assets

Patents (net) 5,000

Total Assets $68,100

Liabilities

Current Liabilities

Accounts Payable $ 9,900

Salaries payable 1,500

Taxes payable 2,500

Unearned rent 900

Total current liabilities $14,800

Long-Term Liabilities

Bonds payable (due 2013) $11,000

Less: Discount on bonds payable (1,000)

Total long-term liabilities 10,000

Total Liabilities $24,800

Stockholders' Equity

Contributed Capital

Common stock, $10 par $12,000

Premium on common stock 10,400

Total contributed capital $22,400

Retained Earnings 24,200

Total contributed capital and retained earnings $46,600

Less: Treasury stock (at cost) (3,300)

Total Stockholders' Equity $43,300

Total Liabilities and Stockholders' Equity $68,100

P4-3 - Balance Sheet. (Moderate) Preparation from accounts listed in alphabetical order. Identification of possible disclosures. Computation of working capital and current ratio.

GREEN MANUFACTURING COMPANY

Balance Sheet

December 31, 2010

Assets

Current Assets

Cash $ 7,200

Marketable securities (short-term) 8,400

Accounts receivable $15,300

Less: Allowance for doubtful accounts (1,000) 14,300

Inventory

Raw materials $10,100

Work in process 14,700

Finished goods 23,800 48,600

Prepaid insurance 2,600

Total current assets $ 81,100

Long-Term Investments

Bond sinking fund $ 7,700

Investment in available-for-sale stock 16,400

Total long-term investments 24,100

Property, Plant, and Equipment

Land $17,000

Buildings $92,500

Less: Accumulated depreciation (32,400) 60,100

Machinery and equipment $57,800

Less: Accumulated depreciation (30,000) 27,800

Total property, plant, and equipment 104,900

Intangible Assets

Patents (net) 8,600

Total Assets $218,700

Liabilities

Current Liabilities

Notes payable $ 5,000

Accounts payable 20,900

Interest payable 500

Wages payable 2,700

Dividends payable 5,600

Income taxes payable 8,900

Unearned rent 5,000

Total current liabilities $ 48,600

Long-Term Liabilities

Bonds payable (due 2024) $29,000

Less: Discount on bonds payable (2,500) $26,500

Accrued pension cost 13,300

Total long-term liabilities 39,800

Other Liabilities

Deferred taxes payable 2,800

Total Liabilities $ 91,200

Stockholders' Equity

Contributed Capital

Preferred stock, $100 par $30,000

Common stock, $10 par 44,100

Premium on preferred stock 7,000

Premium on common stock 16,300

Total contributed capital $ 97,400

Retained Earnings 28,100

Accumulated Other Comprehensive Income

Unrealized increase in value of

available-for-sale stock 2,000

Total Stockholders' Equity $127,500

Total Liabilities and Stockholders' Equity $218,700

Additional parenthetical or note disclosures which might be made include:

1. Inventory costing and valuation methods(s) for raw materials, goods in process, and finished goods.

2. Valuation method for marketable securities and investment in stock.

3. Number of shares of preferred and common stocks authorized and issued.

4. Pension plan information.

5. Bond indenture provisions, including sinking fund information.

Working capital = Current assets - Current liabilities

$32,500 = $81,100 - $48,600

Current ratio = Current assets ÷ Current liabilities

1.67 = $81,100 ÷ $48,600