Illini Company, Inc. Balance Sheet as of 12/31/20X0 Assets Current Assets: Cash $1,500,000 Accounts receivable, net 18,000 Inventory 50,000 Total
This problem has been solved!
Do you need an answer to a question different from the above? Ask your question!
Question:
Illini Company, Inc. | |||
Balance Sheet | |||
as of 12/31/20X0 | |||
Assets | |||
Current Assets: | |||
Cash | $1,500,000 | ||
Accounts receivable, net | 18,000 | ||
Inventory | 50,000 | ||
Total current assets | 1,568,000 | ||
Equipment | 90,000 | ||
Goodwill | 20,000 | ||
Total assets | $1,678,000 | ||
Liabilities and shareholders\' equity | |||
Shareholders\' equity: | |||
Common stock, 20,000 shares outstanding, $1 par | $20,000 | ||
Additional paid-in capital | 280,000 | ||
Retained earnings | 1,378,000 | ||
Total shareholders\' equity | 1,678,000 | ||
Total liabilities and shareholders\' equity | $1,678,000 |
- Note that all additional paid-in capital (APIC) sub-accounts (e.g., APIC-options and APIC-treasury stock), if any, are tracked in the “Additional paid-in capital” account on the Balance Sheet.
- Illini provides a one-year warranty for one of its products. Based on industry experience, the estimated total warranty costs are 6% of sales. Sales of the product in 20X1 and 20X2 are $350,000 and $400,000, respectively. Actual warranty claims in 20X1 and 20X2 are $10,000 and $30,000, respectively. Out of the $30,000 claims in 20X2, $12,000 is related to the 20X1 sale.
Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes.
* Average response time.
Posted Date: October 25, 2020 22:30:48