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Chrome File Edit View History Bookmarks People Window Help / D L e | ezto.mheducation.com/hm.tpx O Shibboleth Logout XConnect-Chapter 2 Current Assets-Knowledge C xCG delivery truck in accounting-X a The following information applies to the questions displayed below Inc., heado ered in Starfruits (simplified) balance sheet from a recent year (fiscal year ending on the last Saturday of September) 27,2014 (dollars in millions) Current assets: s 13,994 11353 7644 2,130 24,096 Other current assets Property, plant, and equipment, net Total assets Current Liablities 131.466 20,831 2.650 S 234,164 S AND STOCKHOLDERS\' EQUITY $ 30.501 Accrued e 8.581 6,372 Common stock (S0.00001 per value) 24,912 equity 234.164 a Borrowed $18,293 from banks due in two years c. Purchased property, plant, and equipment paid $9.600 in cash and signed a short-term note for $1.438 e. Sold short-term al shares of common stock for $1,498 in cush, total par value was $1 and the rest was in excess of par value, s costing $19,035 for $19,035 cash.

Solution

1 Ref. Account titles and explanations Debit Credit a. Cash 18293 Long-term debt 18293 (Borrowed from banks due in 2 years) b. Short-term investments 18880 Long-term investments (23600*1/5) 4720 Cash 23600 (Purchased investments) c. Property plant and equipment 11038 Cash 9600 Short-term notes payable 1438 (Purchased Property plant and equipment) d. Cash 1498 Common stock 1 Additional paid-in capital 1497 (Issued common stock in excess pf par) e. Cash 19035 Short-term investments 19035 (Sold short term investments) f. Retained earnings 11154 Dividend payable 11154 (Dividend declared) 2 Cash Short-term investments Beg. Bal 13994 Beg. Bal 11353 Cash Long term debt 18293 Cash 18880 Common stock 1 Cash 19035 Additional paid-in capital 1497 Short-term investments 19035 30233 19035 Short-term investments 18880 End. Bal 11198 Long-term investments 4720 Property plant and equipment 9600 52820 33200 End. Bal 19620 Accounts receivable Inventories Beg. Bal 17644 Beg. Bal 2130 17644 0 2130 0 End. Bal 17644 End. Bal 2130 Other current assets Long-term investments Beg. Bal 24096 Beg. Bal 131466 Cash 4720 24096 0 136186 0 End. Bal 24096 End. Bal 136186 Property plant and equipment Other non-current assets Beg. Bal 20831 Beg. Bal 12650 Cash 9600 Short-term notes payable 1438 31869 0 12650 0 End. Bal 31869 End. Bal 12650 Accounts Payable Accrued expenses Beg. Bal 30501 Beg. Bal 18641 0 30501 0 18641 End. Bal 30501 End. Bal 18641 Unearned revenue Short-term notes payable Beg. Bal 8581 Beg. Bal 6372 Property plant and equipment 1438 0 8581 0 7810 End. Bal 8581 End. Bal 7810 Dividends Payable Long-term debt Beg. Bal 0 Beg. Bal 29284 Retained earnings 11154 Cash 18293 0 11154 0 47577 End. Bal 11154 End. Bal 47577 Other non-current liabilities Common stock Beg. Bal 28139 Beg. Bal 1 Cash 1 0 28139 0 2 End. Bal 28139 End. Bal 2 Additional paid-in-capital Retained earnings Beg. Bal 24912 Beg. Bal 87733 Cash 1497 Dividend payable 11154 0 26409 11154 87733 End. Bal 26409 End. Bal 76579 3 Balance sheet Assets Current assets: Cash 19620 Short-term investments 11198 Accounts receivable 17644 Inventories 2130 Other current assets 24096 Total 74688 Long-term investments 136186 Property plant and equipment 31869 Other non-current assets 12650 Total Assets 255393 Liabilities and stockholder\'s equity: Current Liabilities: Accounts Payable 30501 Accrued expenses 18641 Unearned revenue 8581 Short-term notes payable 7810 Dividends Payable 11154 Total current laibilities 76687 Long-term debt 47577 Other non-current liabilities 28139 Total liabilities 152403 Stockholder\'s equity Common stock 2 Retained earnings 76579 Additional paid-in-capital 26409 Total 255393