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Aaaa493634657 Balance Sheet Valix C1Valix
Aaaa493634657 Balance Sheet Valix C1Valix
BALANCE SHEET
The trial balance of Gar Company reflected the following liability account
balances at December 31, 2006:
Accounts payable 1,900,000
Bonds payable 3,400,000
Deferred tax liability 400,000
Dividends payable 500,000
Income payable 900,000
Note payable, due January 31, 2007 600,000
Discount on bands payable 200,000
The deferred tax liability is based on temporary differences that will
reverse equally in 2007 and 2008.
10. In Gar’s December 31, 2006 balance sheet, the current liabilities
total was
a. 7,100,000
b. 4,300,000
c. 3,900,000
d. 4,100,000
The December 31, 2006 balance sheet of East Company contained the
following current assets:
Cash 3,200,000
Accounts receivable 2,000,000
Inventory 2,800,000
Deferred charges 200,000
8,200,000
An examination revealed that accounts receivable consisted of the
following items:
Customers’ accounts 1,420,000
Employees’ account-current 240,000
Advances to subsidiary 260,000
Allowance for uncollectible accounts (120,000)
Claims against shipper for goods lost in transit 200,000
2,000,000
15. On December 31, 2006, East Company should report total current
assets at
a. 7,740,000
b. 7,780,000
c. 7,940,000
d. 8,200,000
Stockholders’ equity
Common stock 5,000,000
Retained earnings 500,000
Total 5,500,000
16. In its 2006 statement of stockholders’ equity, United’s total amount
of stockholders’ equity at December 31, 2006 is
a. 5,000,000
b. 5,500,000
c. 5,800,000
d. 5,200,000
The adjusted trial balance of Zinc Company at December 31, 2006, includes the
following account balances:
Common stock 6,000,000
Additional paid-in capital 1,000,000
Treasury stock, at cost 500,000
Net unrealized loss on available for sale securities 200,000
Retained earnings appropriated 1,500,000
Retained earnings unappropriated 2,000,000
17. What amount should Zinc report as total stockholders’ equity in its
December 31, 2006 balance sheet?
a. 10,000,000
b. 10,500,000
c. 9,800,000
d. 9,300,000
The accounts below were taken form the unadjusted trial balance of
Kasie Company as at December 31, 2006:
Cash, net of bank overdraft of P150,000 600,000
Notes receivable (including discounted note of P100,000) 500,000
Trade accounts receivable, net of customers’ credit
balances of P50,000 700,000
Merchandise inventory 800,000
Trade accounts payable, net of creditors’ debit balances
of P100,000 800,000
21. What is the correct amount of current assets on December 31, 2006?
a. 2,800,000
b. 2,700,000
c. 2,600,000
d. 2,900,000
The following amounts were taken from the unadjusted trial balance of
Tank Company on December 31, 2006:
Accounts payable 900,000
Accounts receivable 800,000
Accrued interest payable 50,000
Cash 200,000
Dividends payable 250,000
Income tax payable 100,000
Trading securities 1,000,000
Notes receivable 1,500,000
Merchandise inventory 750,000
Bonds payable, P500,000 due September 30 annually 2,000,000
Contingent liabilities 400,000
Accrued expenses 350,000
The accounts receivable balance includes customers’ deposit of
P200,000. The market value of the trading securities is P700,000. The
balance of the notes receivable includes P300,000 of note discounted for
which the company is contingently liable.
24. What is the total current assets?
a. 4,150,000
b. 3,850,000
c. 3,650,000
d. 4,250,000
The following trial balance of Trey Company at December 31, 2006 has
been adjusted except for income tax expense:
Cash 550,000
Accounts receivable, net 1,650,000
Prepaid taxes 350,000
Accounts payable 140,000
Common stock 500,000
Additional paid in capital 680,000
Retained earnings 630,000
Foreign currency translation adjustment 400,000
Revenue 3,600,000
Expenses 2,600,000
5,550,000 5,550,000
During 2006, estimated tax payments of P350,000 were charged to
prepaid taxes, Trey has not yet recorded income tax expense. There were
no differences between financial and taxable income. Trey’s tax rate is
35%.
Included in accounts receivable is P500,000 due from a customer.
Special terms granted to this customer require payment in equal
semiannual installments of P125,000 every April 1 and October 1.
26. In Trey’s December 31, 2006 balance sheet, what amount should be
reported as total current assets?
a. 1,950,000
b. 2,200,000
c. 2,300,000
d. 2,550,000
27. In Trey’s December 31, 2006 balance sheet, what amount should be
reported as total retained earnings?
a. 1,680,000
b. 1,200,000
c. 1,280,000
d. 1,630,000
The following trial balance of Mint Company at December 31, 2006, has
been adjusted except for income tax expense:
Cash 600,000
Accounts receivable, net 3,500,000
Cost in excess of billings on long-term
contracts 1,600,000
Billings in excess of cost on long-term
contracts 700,000
Prepaid taxes 525,000
Property, plant and equipment, net 1,435,000
Note payable – noncurrent 1,620,000
Common stock 750,000
Additional paid-in capital 2,030,000
Retained earnings unappropriated 900,000
Retained earnings restricted for note payable 160,000
Earnings from long-term contracts 6,680,000
Costs and expenses 5,180,000
12,840,000 12,840,000
Mint uses the percentage-of-completion method to account for
long-term construction contracts for financial statement and
income tax purposes. All receivables on these contracts are
considered to be collectible within 12 months.
During 2006, estimated tax payments of P525,000 were charged to
prepaid taxes. Mint has not recorded income tax expense. There
were no temporary or permanent differences. The tax rate is 35%.
In Mint’s December 31, 2006 balance sheet, what amount should
be reported as
28. Total retained earnings?
a. 1,875,000
b. 2,035,000
c. 2,400,000
d. 2,560,000
The following trial balance of Shaw Company at December 31, 2006 has
been adjusted except for income tax expense:
Cash 675,000
Accounts receivable (net) 2,695,000
Inventory 2,185,000
Property, plant and equipment 10,245,000
Accounts payable and accrued liabilities 1,800,000
Income tax payable 1,750,000
Deferred tax liability 750,000
Common stock 2,500,000
Additional paid in capital 3,000,000
Retained earnings, 1/1 3,350,000
Net sales and other revenue 15,000,000
Costs and expenses 10,000,000
Income tax expense 2,350,000
28,150,000 28,150,000
Included in accounts receivable ins P1,000,000 due from a customer and
payable in quarterly installments of P125,000. The last payment is due
December 30, 2008. the balance in the deferred tax liability account
pertains to a temporary difference that arose in a prior year, of which
P150,000 is expected to reverse in 2007. During the year, estimated tax
payment of P600,000 was charged to income tax expense. The income
tax rate is 35% on all types of income. In Shaw’s December 31, 2006
balance sheet
35. The current assets total is
a. 6,030,000
b. 5,555,000
c. 5,530,000
d. 5,055,000
The current sections of the unadjusted balance sheet of Camarines Sur Company on
December 31, 2006 were as follows:
CURRENT ASSETS CURRENT LIABILITIES
Cash 2,000,000 Trade accounts payable, net
of a debit balance of P50,000 2,450,000
Accounts receivable 3,000,000 Interest payable 150,000
Merchandise inventory 1,900,000 Income tax payable 300,000
Deferred charges 100,000 Money claims of the union,
pending final decision 500,000
Mortgage payable, due in four
annual installments 2,000,000
Total current assets 7,000,000 Total current liabilities 5,400,000
A review of the accounts showed that the cash balance of P2,000,000
included a customer’s check amounting to P100,000 returned by the
bank marked NSF, an employee’s IOU of P50,000, and the amount of
P200,000 deposited with the court for a case under litigation. The cash
in bank portion of P1,650,000 is the balance per bank statement. On
December 31, 2006, outstanding checks amounted to P250,000.
39. The correct total of current liabilities on December 31, 2006 should
be
a. 3,450,000
b. 3,400,000
c. 3,950,000
d. 3,700,000