Q13BP Classify the following balance s... [FREE SOLUTION]

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Foundations Of Financial Management

Stanley B. Block, Geoffrey A. Hirt, Bartley Danielsen

Business Studies

16th Edition 路 768 pages

ISBN: 9781259277160

Chapter 2: Q13BP (page 50)

Classify the following balance sheet items as current or noncurrent:
Retained earning
Bond payable
Accounts payable
Accrued wages payable
Prepaid expenses
Accounts receivable
Plant and equipment
Capital in excess of par
Inventory
Preferred stock
Common stock
Marketable security

Short Answer

Expert verified

Current asset means the assets which can reasonably be expected to be realizable within a year or during the normal operating cycle of the business.

Step by step solution

Non-current assets

The non-current assets mean the assets which can not be expected to be realized in the normal operating cycle or within one year.

Classification of balance sheet item as current or non-current

Particulars	Classification
Retained earnings	NA
Bonds payable	Non-current
Accounts payable	Current
Accrued wages payable	Current
Prepaid expenses	Current
Accounts receivable	Current
Plant and equipment	Non-current
Capital in excess of par	NA
Inventory	Current
Preferred stock	NA
Common stock	NA
Marketable security	Current

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Stud Clothier
Balance sheet 20X1
Assets		Liabilities and Equity
Cash	\)60,000	Account payable	\(220,000
Account receivable	240,000	Accrued taxes	30,000
Inventory	350,000	Bonds payable (long term)	150,000
Plant and equipment	410,000	Common stock	80,000
		Paid in capital	200,000
		Retained earnings	380,000
Total assets	\)1,060,000	Total LIbilities and Equity	$1,060,000

Stud Clothier
Balance sheet 20X1
Assets		Liabilities and Equity
Cash	\)60,000	Account payable	\(220,000
Account receivable	240,000	Accrued taxes	30,000
Inventory	350,000	Bonds payable (long term)	150,000
Plant and equipment	410,000	Common stock	80,000
		Paid in capital	200,000
		Retained earnings	380,000
Total assets	\)1,060,000	Total LIbilities and Equity	$1,060,000

	20X1	20X2
Sales	\(3,230,000	\)3,370,000
Cost of goods sold	2,130,000	2,850,000
Gross profits	\(1,100,000	\)520,000
Selling and administrative expenses	298,000	227,000
Operating profits	\(802,000	\)293,000
Interest expense	47,200	51,600
Income before taxes	\(754,800	\)241,400
Taxes (35%)	264,180	84,490
Income after tax	\(490,620	\)156,910

91影视

Classify the following balance sheet items as current or noncurrent:
Retained earning
Bond payable
Accounts payable
Accrued wages payable
Prepaid expenses
Accounts receivable
Plant and equipment
Capital in excess of par
Inventory
Preferred stock
Common stock
Marketable security

Short Answer

Step by step solution

Non-current assets

Classification of balance sheet item as current or non-current

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Retained earning	Bond payable
Accounts payable	Accrued wages payable
Prepaid expenses	Accounts receivable
Plant and equipment	Capital in excess of par
Inventory	Preferred stock
Common stock	Marketable security

91影视

Classify the following balance sheet items as current or noncurrent:Retained earningBond payableAccounts payableAccrued wages payablePrepaid expensesAccounts receivablePlant and equipmentCapital in excess of parInventoryPreferred stockCommon stockMarketable security

Short Answer

Step by step solution

Non-current assets

Classification of balance sheet item as current or non-current

One App. One Place for Learning.

Most popular questions from this chapter

Recommended explanations on Business Studies Textbooks

Organizational Communication

Public Relations Business Studies

Strategic Analysis

Business Development

Business Data Analytics

Managers

Study anywhere. Anytime. Across all devices.

Classify the following balance sheet items as current or noncurrent:
Retained earning
Bond payable
Accounts payable
Accrued wages payable
Prepaid expenses
Accounts receivable
Plant and equipment
Capital in excess of par
Inventory
Preferred stock
Common stock
Marketable security