101664305 ACC421 ACC 421 Week 4 Learning Team Assignments From the Text
Acc/421
Week 4 Learning Team Assignments
PROBLEM 5-3
Side Kicks Company
Balance Sheet
December 31, 2007
Assets
Current assets
Cash
$ 41,000
Accounts receivable
$163,500
Less: Allowance for uncertain accounts
8,700
154,800
Inventory—at LIFO cost
308,500
Prepaid insurance
5,900
Total existing assets
$ 510,200
Long-term investments
Investments in stocks and bonds, of which investments of $120,000 have been pledged as security for notes due—at fair value
339,000
Property, plant, and equipment
Expenditure of unfinished plant facilities
Land
85,000
Building in process of construction
124,000
209,000
Equipment
400,000
Less: Accum. depreciation 140,000 260,000
469,000
Intangible assets
Patents—at cost less amortization
36,000 Total assets
$1,354,200
PROBLEM 5-3 (Continued)
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable, secured by investments of $120,000
$ 94,000
Accounts due
148,000
Accrued expenditures
49,200
Total existing debts
$ 291,200
Long-term liabilities
8% bonds payable, due January 1, 2018
400,000
Less: Unamortized discount on bonds due
20,000
380,000 Total debts
671,200
Stockholders’ equity
Common stock
Authorized 600,000 shares of $1 par value; issued and outstanding, 500,000 shares
$500,000
Premium on common stock 45,000
545,000
Saved income
138,000 683,000 Total debts and stockholders’ equity
$1,354,200
30 Points
CA 24-2
Item 1
The staff
Week 4 Learning Team Assignments
PROBLEM 5-3
Side Kicks Company
Balance Sheet
December 31, 2007
Assets
Current assets
Cash
$ 41,000
Accounts receivable
$163,500
Less: Allowance for uncertain accounts
8,700
154,800
Inventory—at LIFO cost
308,500
Prepaid insurance
5,900
Total existing assets
$ 510,200
Long-term investments
Investments in stocks and bonds, of which investments of $120,000 have been pledged as security for notes due—at fair value
339,000
Property, plant, and equipment
Expenditure of unfinished plant facilities
Land
85,000
Building in process of construction
124,000
209,000
Equipment
400,000
Less: Accum. depreciation 140,000 260,000
469,000
Intangible assets
Patents—at cost less amortization
36,000 Total assets
$1,354,200
PROBLEM 5-3 (Continued)
Liabilities and Stockholders’ Equity
Current liabilities
Notes payable, secured by investments of $120,000
$ 94,000
Accounts due
148,000
Accrued expenditures
49,200
Total existing debts
$ 291,200
Long-term liabilities
8% bonds payable, due January 1, 2018
400,000
Less: Unamortized discount on bonds due
20,000
380,000 Total debts
671,200
Stockholders’ equity
Common stock
Authorized 600,000 shares of $1 par value; issued and outstanding, 500,000 shares
$500,000
Premium on common stock 45,000
545,000
Saved income
138,000 683,000 Total debts and stockholders’ equity
$1,354,200
30 Points
CA 24-2
Item 1
The staff