Review the balance sheet of Circuit City in Appendix A. In addition to Prepayments, identify two accounts (either assets or liabilities) requiring adjusting entries.

Appendix A:

Transcribed Image Text:

CONSOLIDATED BALANCE SHEETS ASSETS Ad Ferty 29 29 2004 CURRENT ASSETS: Cash and cash equivalents.. 879,660 5783,471 Short-term investments a 125,325 Accounts receivable, net of almance for doubetul accounts of $120 and 5547 172.995 170,568 Retained interests in securitized receivables... 425,678 Merchandise inventory... 1,459,520 1517,256 Deferral income taxes 29,518 Prepaid expenses and other current assets 18.697 22.08 TOTAL CURRENT ASSETS. Property and equipment, bet... Deferred income taxes... 2,685,715 2,919,061 738,802 677,107 73,558 $8,146 Goodwill 215.384 Other intangible assets. 31331 Other 44092 46.212 TOTAL ASSETS. 53.789.382 $3.730.52 LIABILITIES AND STOCKHOLDERS EQUITY CURRENT LIABILITIES: Accounts payable.. Accrued expenses and other current liabilities. Accred income taxes Deferred income taxes Current installments of long-term debe Liabilities of discontinued operations TOTAL CURRENT LIABILITIES. Long-term debt, excluding current installments.. 961.718 $833,825 228.966 149,605 72.274 71.163 39,422 1315 3.00 Accrued straight-line rent and deferred rent credits Accrued lease termination costs 1,263,846 11.522 1,138,198 22,691 230,426 206,784 184,234 75.722 91,928 62.120 1701,948 1.506.565 Other abilities TOTAL LIABILITIES STOCKHOLDERS EQUITY Common stock, $8.50 par value; 525,000,000 shares author 188,150,383 shares isnod and outstanding (203,399,195 in 2004)@@@@@@@On....et Capital in excess of par value... Retained earnings Accumulated other comprehensive income TOTAL STOCKHOLDERS EQUITY Commitments and contingent lisblities po TOTAL LIABILITIES AND STOCKHOLDERS EQUITY 94,875 101,950 721,038 922,600 1,247,221 1.199,411 25.100 2,087,434 7.221961 53.789.382 $3.730.520