Reorganization and Troubled Debt Restructuring 135 CHAPTER 8 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 8-1: a Trade accounts payable (P52‚000 + P62‚700) P114‚700 12% preferred stock (5‚000 x P1) P 5‚000 Paid in capital in excess of par (5‚000 x P9) 45‚000 Cash (P62‚700 x P0.80) _50‚160 _100‚160 Gain from discharge of indebtedness P 14‚540 8-2: c 8-3: c 8-4: b Carrying value of the
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According to the entity theory‚ there is no fundamental difference between liabilities and owners equity. Both provide capital to the business entity and receive income in return in the form of interest and dividends (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 363). Under entity theory‚ liabilities and equity would require separate line disclosure in the balance sheet‚ but there would be no subtotals for total liabilities or total equity. (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 363). Both are considered
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P 30‚000 Loss of P100‚000‚ 4:3:3 ( 40‚000) ( 30‚000) ( 30‚000) Cash distribution P – P150‚000 P – 4-8: b NORY OSCAR Capital balances before realization P23‚000 P 13‚500 Additional investment by Nory for the unpaid liabilities (33‚000-18‚000) 15‚000 – Loss on realization (schedule 1) ( 30‚900) ( 20‚600) Payment by Oscar to Nory P 7‚100 ( P7‚100) Schedule 1 Total capital before liquidation P 36‚500
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What is the amount of total liabilities and equity that appears on the firm’s balance sheet? The amount of total liabilities and equity that appears on the firm’s balance sheet is
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The bodies that provide authoritative support for GAAP are the Securities and Exchange Commission (SEC) and the Financial Accounting Standards Board (FASB). 2. What elements comprise the FASB’s conceptual framework? Elements Assets‚ Liabilities‚ and Equity Investments by owners Distribution to owner’s Comprehensive income Revenues and Expenses Gains and Losses Chapter 8 Exercise E8-5 1. Mingenback Company has the following internal control procedures over cash disbursements
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Long-Term Financial Needs FIN/486 International Finance Paper Huffman Trucking has adjusted to the needed changes in our industry. They were able to double their fleet within the first 10 years of business and it proves their dedication and to the success of this business. The company has continued to advance in technology and is able to stay competitive and to move into different regions with ease. Huffman Trucking’s vision is to remain competitive with other trucking companies by offering
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The impact of changing from Chinese GAAP to IFRS Name: Si Chen H00121138 Module: Coursework Assessment Abstract In the 21st century‚ economic globalization has become an investible trend. With the rapid growth of economic globalization and the growth of international capital markets‚ international accounting convergence has become an irreversibly realistic issue for countries
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shown as a percentage of revenue. Similarly‚ balance sheet is common-sized as follows : • Total of assets side or total of liability side is taken as hundred. • Each item of asset is expressed as percentage of total asset total of capital and liabilities. • Each item of the liability side is also expressed as a percentage of total assets or total of capital and liabilities. USEFULNESS OF COMMON-SIZE FINANCIAL STATEMENT ANALYSIS • Inter-firm comparison becomes more meaningful when financial statement
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are three ways to analyze financial statements there is the vertical analysis‚ which uses the base percentage to express the assets or liabilities and stockholders’ equity. Horizontal analysis or the trend analysis is how someone can evaluate the financial statement over a period. With this method‚ one can determine an increase or decrease in assets liabilities or stockholders equity. This can be done in percentage or totals Horizontal analysis is used primarily with an intercompany comparison
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(Less) accum depreciation Total Net Fixed Assets Other Assets Total Assets Liabilities and Stockholders’ Equity Current Liabilities Accounts Payable Notes Payable - banks Income Taxes Payable Current Installments - lt debt Total Current Liabilities Long Term Debt Term Loan Notes Payable to Bank Total Liabilities Stockholders’ Equity Common Stock Additional Paid in Capital Retained Earnings Total Stockholders’ Equity Total Liabilities and Equity 6/30/86 9/30/86 12/31/86 3/31/87 156 1‚556
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