2) Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2) Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be reported as either assets, liabilities or stockholders' equity. a) Neptune invested $75,000 in an available for sale securities, fair value of which is $95,000 b) On October 1, 2018, the company borrowed $900,000 for 5 years at 8% per year. Interest is to be paid half-yearly on April 1 of every year. c) On December 15, 2018, the company declared a $1.50 per share dividend on the 60,000 shares of common stock outstanding, to be paid on January 25, 2019. d) During the year, customer advances of $220,000 were received; $110,000 of this amount was earned by December 31, 2018. e) A 10% bonds payable of 1,000,000 was issued on December 31, 2018, due on December 31, 2023. f) Treasury stock of $55,000 has been recorded at cost. g) Notes payable of $440,000 is due on 31st January, 2020. h) Neptune restricted 50% of its' total cash of $330,000 to repay a loan after 2 years. i) Neptune has a claim of $60,000 to be received after 2 months against an insurance company for a causality loss. j) Neptune owns an equipment of $35,000 which is currently unused. Instructions For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders' equity. Mention the classification as well. (12) 2) Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be reported as either assets, liabilities or stockholders' equity. a) Neptune invested $75,000 in an available for sale securities, fair value of which is $95,000 b) On October 1, 2018, the company borrowed $900,000 for 5 years at 8% per year. Interest is to be paid half-yearly on April 1 of every year. c) On December 15, 2018, the company declared a $1.50 per share dividend on the 60,000 shares of common stock outstanding, to be paid on January 25, 2019. d) During the year, customer advances of $220,000 were received; $110,000 of this amount was earned by December 31, 2018. e) A 10% bonds payable of 1,000,000 was issued on December 31, 2018, due on December 31, 2023. f) Treasury stock of $55,000 has been recorded at cost. g) Notes payable of $440,000 is due on 31st January, 2020. h) Neptune restricted 50% of its' total cash of $330,000 to repay a loan after 2 years. i) Neptune has a claim of $60,000 to be received after 2 months against an insurance company for a causality loss. j) Neptune owns an equipment of $35,000 which is currently unused. Instructions For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders' equity. Mention the classification as well. (12)
Expert Answer:
Answer rating: 100% (QA)
Neptune Corporation Classification a 75000 as assets In... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Following is information taken from Bridgeport Incs December 31 2018 balance sheet 5 bonds payable 5400000 maturing December 31 2022 each 1000 bond convertible into 21 common shares 5400000 8 bonds...
-
The company had 100,000 shares of common stock outstanding on January 1. In addition, as of January 1, the company had issued 10,000 convertible preferred shares (cumulative, 5%, $100 par). These...
-
A firm has 2,000,000 shares of common stock outstanding with a market price of $2.00 each. It has 2,000 bonds outstanding, each with a market value of $1,200 (120 percent of face). The bonds mature...
-
What are the key issues associated with managing an international assignment?
-
Jesse Duncan established Bear Computer Services on August 1, 2013. The effect of each transaction and the balances after each transaction for August are shown below in the integrated financial...
-
In terms of impulse and momentum, why do padded dashboards make automobiles safer?
-
Beccan Company is a discount tire dealer operating 25 retail stores in the metropolitan area. Beccan sells both private-brand and name-brand tires. The company operates a centralized purchasing and...
-
Refer to Table 25.2 in the text to answer this question. Suppose today is November 22, 2011, and your firm produces breakfast cereal and needs 140,000 bushels of corn in March 2012 for an upcoming...
-
For the following questions, you don't need to use any data sets. You need to use appropriate statistical and probability functions covered in lecture 9 to answer the following questions. a. Birth...
-
On 1st January 2019 the account receivable balance brought forward from the previous year totaled 140,900. During the year ended 31 December 2019, total sales amounted to 322,520 of which 85%...
-
Acquire information about the Bernie Madoff investment management scandal. Integrate the theory presented in this chapter with the facts of the case to explain the scandal. Why were government...
-
Assume you know YTM for 20 different bonds. All these bonds mature 10 years from now and all have different coupon rates. Will you be able to find a price of a bond maturing 6 months from now? If...
-
Jonah, a single taxpayer, purchased a primary residence by borrowing $300,000 with a 6% loan secured by the home. This year the loan required principal payments of $2,000 and interest payments of...
-
Define net neutrality and open vs. closed software using course materials. What do they have to do with the main debates outlined above - free market vs. net neutrality and issues around creativity?...
-
1. Find the general solution of these constant coefficient linear inhomoge- neous ODEs, using the method of undetermined coefficients. (Note: you will need to find both the general solution to the...
-
Please examine the scope of victim advocacy, particularly by thoroughly discussing each of the following: 1) What is the chief role of victim advocates? What might their day-to-day activities...
-
define classes to approximately represent class hierarchy as shown in above figure. Use constructors for both classes and display salary for a particular employee
-
Do the three planes x + 2x + x 3 = 4, X X 3 = 1, and x + 3x = 0 have at least one common point of intersection? Explain.
-
Fairbanks Corporation purchased 400 shares of Sherman Inc. common stock as an available-for-sale investment for $13,200. During the year, Sherman paid a cash dividend of $3.25 per share. At year-end,...
-
What are some examples of related parties?
-
Gregory Inc. acquired 20% of the outstanding common stock of Handerson Inc. on December 31, 2012. The purchase price was $1,250,000 for 50,000 shares. Handerson Inc. declared and paid an $0.80 per...
-
Discuss the relative advantages and disadvantages of doing daily partial backups versus daily full backups versus real-time mirroring. How does each option affect RPO and RTO?
-
What privacy concerns might arise from the use of biometric authentication techniques? What about the embedding of RFID tags in products such as clothing?
-
Segregation of duties is essential to good internal control. Increasingly, computer systems automatically authorize and record transactions, such as generating pur chase orders whenever the quantity...
Study smarter with the SolutionInn App