Balance sheets of two companies are given below Assets Cash Accounts receivable Interest receivable Prepaid insurance Supplies
Fantastic news! We've Found the answer you've been seeking!
Question:
Balance sheets of two companies are given below
Transcribed Image Text:
Assets Cash Accounts receivable Interest receivable Prepaid insurance Supplies Equipment Less: Accumulated depr. Winter Company Balance Sheet September 30, 2020 Investments Notes receivables Patents Total assets Liabilities Accounts payable Salaries & wages payable Unearned revenue Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity $ 26,000 $ 2,820 1,584 750 $2,000 62,846 $ 62,500 1,620 480 600 800 26,000 10,000 6,000 12,000 $120,000 $ 5,154 114,846 Total liabilities and stockholders' equit $120,000 Notes: The note receivable is due in 3 years. Investments are intended to be held for more than 1 year. Assets Levana Inc. Balance Sheet September 30, 2020 Cash Accounts receivable Prepaid rent Prepaid insurance Supplies Investments Company vehicle Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Salaries & wages payable Interest payable Notes payable (due in 8 months) Bank loan Total liabilities Stockholders' Equity Common stock $42,000 37,580 110,320 100,850 $ 7,280 600 6,560 14,000 50,000 13,000 Retained earnings 28,560 Total liabilities and stockholders' equity $ 18,610 62,000 12,000 Required: 1.) Prepare a classified balance sheet for each company. 2.) Identify at least one concern regarding each company. 3.) Select the company in which you would invest. Detail the reasoning behind your choice. 5,900 2,600 5,000 4,420 9,470 $120,000 $ 78,440 41,560 $120,000 Notes: - The prepaid rent balance represents prepayment for 3 months. The prepaid insurance policy is for 10 months. Investments are in short-term US gov. bonds. The notes payable is due in 8 months. The interest payable is due in 1 month. The bank loan is due in 5 years Assets Cash Accounts receivable Interest receivable Prepaid insurance Supplies Equipment Less: Accumulated depr. Winter Company Balance Sheet September 30, 2020 Investments Notes receivables Patents Total assets Liabilities Accounts payable Salaries & wages payable Unearned revenue Total liabilities Stockholders' Equity Common stock Retained earnings Total stockholders' equity $ 26,000 $ 2,820 1,584 750 $2,000 62,846 $ 62,500 1,620 480 600 800 26,000 10,000 6,000 12,000 $120,000 $ 5,154 114,846 Total liabilities and stockholders' equit $120,000 Notes: The note receivable is due in 3 years. Investments are intended to be held for more than 1 year. Assets Levana Inc. Balance Sheet September 30, 2020 Cash Accounts receivable Prepaid rent Prepaid insurance Supplies Investments Company vehicle Less: Accumulated depreciation Equipment Less: Accumulated depreciation Total assets Liabilities Accounts payable Salaries & wages payable Interest payable Notes payable (due in 8 months) Bank loan Total liabilities Stockholders' Equity Common stock $42,000 37,580 110,320 100,850 $ 7,280 600 6,560 14,000 50,000 13,000 Retained earnings 28,560 Total liabilities and stockholders' equity $ 18,610 62,000 12,000 Required: 1.) Prepare a classified balance sheet for each company. 2.) Identify at least one concern regarding each company. 3.) Select the company in which you would invest. Detail the reasoning behind your choice. 5,900 2,600 5,000 4,420 9,470 $120,000 $ 78,440 41,560 $120,000 Notes: - The prepaid rent balance represents prepayment for 3 months. The prepaid insurance policy is for 10 months. Investments are in short-term US gov. bonds. The notes payable is due in 8 months. The interest payable is due in 1 month. The bank loan is due in 5 years
Expert Answer:
Answer rating: 100% (QA)
Classified Balance Sheet for Levana Inc as of September 30 2020 Assets Current Assets Cash 62500 Accounts receivable 26000 Interest receivable 5000 Prepaid insurance 1620 Supplies 480 Total Current As... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
The classified balance sheet and selected income statement data for Quinn, Inc., as of December 31 , 201 2, are presented next. Selected Income Statement Data Gross Profit...
-
In Chapter 11, we prepared a cash flow statement for Pure Water, Inc. Now, we will analyze Pure Waters financial statements using the tools we learned in this chapter. Following are the balance...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
The read-write head for a hand-held music player has a surface area of 0.04 mm. The head is held 0.04 m above the disk, which is rotating at a constant rate of 1800 rpm. Determine the torque T that...
-
Comparative balance sheets and an income statement for 2008 are presented below for Nroklesah Company. INCOME STATEMENT (2008) Revenue 1,200 Cost of goods sold 750 Gross margin 450 Operating...
-
It is given the force field of the question 13. Determine for what values of the constants the field is central and determine the potential. Question 13 A force field in the plane is described by the...
-
A PI (Polarization Index) Test of a motor winding is performed and the 10-minute ratio is 3.0. The curve is a perfect parabolic shape. What is the verdict?
-
Refer to the data for the Blending Department of Sunspots Beverages, Ltd., in Problem 4-13. Assume that the company uses the FIFO method rather than the weighted-average method in its process costing...
-
The Oldham family have three sons, two of whom have been diagnosed with autism. Both sons have benefited from home-based, one-on-one Applied Behavior Analysis Therapy (ABA). The therapy costs $7000 a...
-
Hauck Financial Services has a number of passive, buy-and-hold clients. For these clients, Hauck offers an investment account whereby clients agree to put their money into a portfolio of mutual funds...
-
Reed Company reported total sales of $150,000 last year and a return on investment (ROI) of 12%. If the company\\\'s turnover was 3, what was the company\\\'s operating income for the year? A....
-
On January 1, 2017, a company began constructing a new asset. It borrowed $1,000,000 to finance the construction with an annual interest rate of 5%. Assume the following payments for construction...
-
Raj Gupta thought he had it all. After earning a full five-year scholarship to a premier engineering university in the United States, he married Aashna, who graduated from the same program. Raj had...
-
Using C + + programming language , You are required to implement a prototype quiz / game in which the user is repeatedly presented with the name of a river and must guess which of four continents it...
-
On January 1, 2022, Maxim Corp. invested $550,500 in Darcy Inc. for 25% of its outstanding shares. Maxim also has representation on the Board of Directors. Darcy shares are not traded in an active...
-
Why do we need customer research? To identify the buying behavior of consumer's likes, dislikes, high consumptions, to ensure about brand image What is the impact of digital technologies on...
-
How long did Majay finance his used car if the initial cost was $8000, final cost was $10000 and the annual rate of simple interest was 3.2%
-
Why do CPA firms sometimes use a combination of positive and negative confirmations on the same audit?
-
What was PepsiCos depreciation expense for 2007 and 2006?
-
Goliath Corporation issues $300,000 of bonds for $312,000. (a) Prepare the journal entry to record the issuance of the bonds, and (b) Show how the bonds would be reported on the balance sheet at the...
-
On January 1, 2010, Furball Company had Accounts Receivable $98,000 and Allowance for Doubtful Accounts $8,100. Furball Company prepares financial statements annually. During the year the following...
-
The hangers support the joist in such a way that the four nails on each hanger can be assumed to support an equal portion of the load. If the joist is subjected to the loading shown, determine the...
-
The 60 mm x 60 mm oak post is supported on the pine block. If the allowable bearing stresses for these materials are oak = 43 MPa and pine 25 MPa, determine the greatest load P that can be...
-
The hangers support the joist in such a way that the four nails on each hanger can be assumed to support an equal portion of the load. Determine the smallest diameter of the nails at A and B to the...
Study smarter with the SolutionInn App