BE 205
The following items are taken from the adjusted trial balance of Highlander Company for the month ending July 31, 2014:
Accounts payable$ 2,000
Accounts receivable5,000
Accumulated depreciation – equipment8,000
Cash2,200
Share capital-ordinary22,000
Depreciation expense2,000
Equipment54,000
Retained earnings, 7/1/1430,000
Service revenue33,000
Supplies1,200
Prepare the current assets section of Highlander’s classified statement of financial position.
BE 206
The following information (in thousands) is available for Wang Company for the year ended December 31, 2014:
Accounts payable¥2,700
Accumulated depreciation?equipment4,000
Share capital-ordinary5,800
Retained earnings4,000
Copyrights4,500
Notes payable (due in 5 years)7,500
Accounts receivable1,500
Cash2,600
Short-term investments1,000
Equipment7,500
Investment in long-term bonds6,900
Instructions
Use the above information to prepare a classified statement of financial position for the year ended December 31, 2014.
BE 207
The following lettered items represent a classification scheme for a statement of financial position and the numbered items represent accounts found on balance sheets. In the blank next to each account, write the letter indicating to which category it belongs.
A.Intangible assetsE.Equity
B.Property, plant, and equipmentF.Non-current liabilities
C.Long-term investmentsG.Current liabilities
D.Current assetsH.Not on the statement of financial position
_____ 1.Accumulated Depreciation_____6. Inventory
_____ 2.Retained Earnings_____7.Patent
_____ 3.Interest Expense_____8.Prepaid Insurance
_____ 4.Income Taxes Payable_____9.Mortgage Payable
_____ 5.Dividends _____10.Investment in long-term bonds
a
BE 208
F. Scot Company prepared the following adjusting entries at year end on December 31, 2013:
(a)Interest Expense.......................................100
Interest Payable............................................100
(b)Interest Receivable......................................150
Interest Revenue............................................150
(c)Salaries and Wages Expense...............................4,000
Salaries and Wages Payable....................................4,000
In an effort to minimize errors in recording transactions, F. Scot Company utilizes reversing entries. Prepare reversing entries on January 1, 2014.
EXERCISES
Ex. 209
The worksheet for Norman Company has been completed through the adjusted trial balance. You are ready to extend each amount to the appropriate financial statement column. Indicate for each account, the financial statement column to which the account should be extended by placing a check mark (?) in the appropriate column.
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Statement of
Income Statement Financial Position
Account TitleDr.Cr.Dr.Cr.
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(1) Cash
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(2) Retained Earnings
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(3) Income Taxes Payable
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(4) Interest Receivable
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(5) Supplies
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(6) Accounts Payable
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(7) Short-term Investments
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(8) Supplies Expense
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(9) Unearned Service Revenue
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(10) Equipment
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(11) Depreciation Expense
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(12) Interest Revenue
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(13) Salaries and Wages Expense
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(14) Dividends
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(15) Accum. Deprec.—Equipment
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(16) Utilities Expense
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(17) Salaries and Wages Payable
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(18) Accounts Receivable
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(19) Notes Payable
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(20) Service Revenue
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