Exercise 3-8 (Algo) Balance sheet; current versus long-term classification [LO3-2, 3-3] Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: a. $67,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $41,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $234,000. The notes are payable in annual installments of $37,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $29,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $114,000. Cone intends to sell one-half of the securities in 2025. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.

Exercise 3-8 (Algo) Balance sheet; current versus long-term classification [LO3-2, 3-3] Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: a. $67,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $41,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $234,000. The notes are payable in annual installments of $37,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $29,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $114,000. Cone intends to sell one-half of the securities in 2025. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 11C

See similar textbooks

Similar questions

Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: a. $68,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $42,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $236,000. The notes are payable in annual installments of $38,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $30,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $116,000. Cone intends to sell one-half of the securities in 2025. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported. X Answer is not complete. CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Current assets: Prepaid rent Investment in equity securities…
S Find online the annual 10 - K report for Costco Wholesale Corporation (COST) for September 28, 2023 f. Did the company have any contingent liabilities at the balance sheet date? Discuss the specific nature of these contingencies and how (or whether) they are expected to affect the firm's financial health h ASSEN s Ope TOTAL ASSETS CURRENT LIABILITIES LABILITIES AND EQUITY A Der Cap OTT L se org TOTAL LIATES COMMITMENTS AND CONTINGENCIES COUNTY 10 suhted this Consescanda Talk sil TOTAL LIABUTES AND EQUITY 2/12 3/18 2241 17667 Sa 24741 2/14 4 04.15 17482 s 52.545 2321 7301 топ 2337 2174 1.589 22 5611 TRE 3377 242 2482 2555 2.558 BUX 4351 = - 2 7.340 084 138931 21842 25194 21547 94111
Current Attempt in Progress The following financial information relates to Cullumber Ltd. (amounts in thousands): 2022 2023 2024 Income before depreciation, amortization, $7,128 $6,650 $5,992 interest, and taxes Interest expense 360 350 280 Cash 210 290 290 Current liabilities (does not include any debt) 1,110 1,920 2,680 Bank loan payable (all long-term) 5,500 6,060 5,260 Shareholders' equity 6,200 6,400 7,260 (a) Calculate the debt to equity, debt as a percentage of total capitalization, and interest coverage ratios. (Round answers to 1 decimal place, e.g. 18.4 or 15.3%.) Debt to equity ratio 2022 % 2023 2024 % % do Net debt as a percentage of total capitalization Interest coverage % % do %
Problem 3:Intercom Company is planning to refinance certain short-term obligations on a long term basis. The entity has a December 31 year-end and the 201 9 financial statements will be published on March 15, 2020.0n December 31, 2019, before reclassification of short-term debt, the liabilities are:Current liabilities:Accounts Payable 7,000,000Note payable-bank 12,000,000Accrued expenses 4,000,000Noncurrent liabilities:Mortgage payable 4,000,000Note payable-due in 2021 3,000,000The entity intends to refinance ₱9,000,000 of the₱ 12,000,000 bank note payable on a long term basisAlthough the entire ₱12,000,000 is due on June 30, 2020, the bank has informally agreed to extend the maturity date for₱ 6,000,000 to June 30, 2021, if necessary.On January 31, 2020, the entity issued share capital for₱ 4,000,000, net issue costs and underwriting fees of ₱500,000.On February 15, 2020, the entity entered into a financing agreement with a financially capable commercial bank, permitting the entity to…
Additional information:i. Supplies as at 31st December 2019, RM34,500.ii. Insurance expense at the rate of RM850 per month.iii. Yearly depreciation on the non current assets as below:• furniture and fittings, RM5,175• motor vehicles, RM20,400.iv. Interest expense RM5,295 still payable by end of the yearv. Estimated doubtful debt at the rate of 2% of accounts receivable Question: 1. Prepare the Statement of Profit or Loss and Other Comprehensive Income for the year ended 31st December 2019. 2. Prepare the Statement of Financial Position as at 31st December 2019.
Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: a. $66,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. b. Prepaid rent of $40,000, covering the period January 1, 2022, through December 31, 2023. c. Notes payable of $232,0o00. The notes are payable in annual installments of $36,000 each, with the first installment payable on March 1, 2022. d. Accrued interest payable of $28,000 related to the notes payable. e. Investment in equity securities of other corporations, $112,000. Cone intends to sell one-half of the securities in 2022. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported. CONE CORPORATION Balance Sheet (Partial) At December 31, 2021 Assets
Current Attempt in Progress Starr Corporation loaned W90,000 to another corporation on December 1, 2022 and received a 3-month, 6% interest-bearing note with a face value of W90,000. What adjusting entry should Starr make on December 31, 2022? O Debit Cash and credit Interest Receivable, W1,350. O Debit Interest Receivable and credit Interest Revenue, W450. O Debit Interest Receivable and credit Interest Revenue, W1,350. O Debit Cash and credit Interest Revenue, W450.
Additional information as at 31 Mac 2020: i. Stock on hand was valued at $8,800 ii. Rent and rates prepaid $1,200 iii. Wages and salaries accrued $1,750 iv. Depreciation is to be provided as follows: a. Motor vehicles - 50 % reducing balance method b. Office equipment - 20% straight line method v. The doubtful debts provision is to be maintained at 2% of closing debtors. Required: Statement of Financial Position as at 31 March 2004PLEASE ANSWER LIKE THIS FORMAT
Additional information:i. Supplies as at 31st December 2019, RM34,500.ii. Insurance expense at the rate of RM850 per month.iii. Yearly depreciation on the non current assets as below:• furniture and fittings, RM5,175• motor vehicles, RM20,400.iv. Interest expense RM5,295 still payable by end of the yearv. Estimated doubtful debt at the rate of 2% of accounts receivable Question: 1. Prepare an adjusted trial balance as at 31st December 2019. 2. Prepare the Statement of Changes in Equity for the year ended 31st December 2019.
View Policies Current Attempt in Progress At December 31, 2020, Coronado Corporation has the following account balances: Bonds payable, due January 1, 2029 $2,600,000 Discount on bonds payable 71,000 Interest payable 62,000 Show how the above accounts should be presented on the December 31, 2020, balance sheet, including the proper classifications. (Enter account name only and do not provide descriptive information.) Coronado Corporation Balance Sheet (Partial) December 31, 2020 $
! Required information [The following information applies to the questions displayed below.] The following is a portion of the current asset section of the balance sheets of HIROE Company, at December 31, 2023 and 2022: Accounts receivable, less allowance for uncollectible accounts of $8,000 and $4,600, respectively 12/31/23 $ 150,000 12/31/22 $ 134,100 Required: b. If bad debts expense for 2023 totaled $10,800, what was the amount of accounts receivable written off during the year? (Hint. Use the T-account model of the Allowance account, plug in the three amounts that you know, and solve for the unknown.) c. The December 31, 2023, Allowance account balance includes $3,200 for a past due account that is not likely to be collected. This account has not been written off. 1. If it had been written off, will there be any effect of the write off on the working capital at December 31, 2023? 2. If it had been written off, will there be any effect of the write off on net income and ROI for the…
Assets Current assets Net fixed assets INCOME STATEMENT, 2022 (Figures in $ millions) Revenue Cost of goods sold Depreciation Interest expense 2021 $ 101 2022 $ 195 910 1,010 $ 2,005 1,085 405 251 Req A and B Req C and D BALANCE SHEET AT END OF YEAR (Figures in $ millions) Liabilities and Shareholders' Equity Current liabilities Long-term debt Req E Complete this question by entering your answers in the tabs below. a&b. What is shareholders' equity in 2021 and 2022? c&d. What is net working capital in 2021 and 2022? e. What are taxes paid in 2022? Assume the firm pays taxes equal to 21% of taxable income. f. What is cash provided by operations during 2022? g.Net fixed assets increased from $910 million to $1,010 million during 2022. What must have been South Sea's gross investment in fixed assets during 2022? Answer is complete but not entirely correct. h. If South Sea reduced its outstanding accounts payable by $46 million during the year, what must have happened to its other current…