Financial Accounting Ch.2

1411 words 6 pages
E2-1, 2,5,7; P2-2A, 4A

E2-1. The following are the major balance sheet classifications:

Current assets (CA
Long-term investments (LTI)
Property, plant and equipment (PPE)
Intangible assets (IA)
Current liabilities (CL)
Long-term liabilities (LTL)
Stockholders’ equity (SE)

Classify each of the following financial statement items taken from Mordica Corporation’s balance sheet.

CL Accounts payable
CA Accounts receivable
PPE Accounts depreciation-equipment
PPE Buildings
CA Cash
CL Interest payable
IA Goodwill
CL Income taxes payable
CL Inventory
CA Stock investments (to be sold in 7 months)
PPE Land (in use)
LTL Mortgage payable
CA Supplies
PPE Equipment
CA Prepaid rent

E2-2. Classify each of the following
…show more content…
Tresh Corporation
Income Statement
For the Year Ended December 31, 2014

Tresh Corporation
Retained Earnings Statement
For the Year Ended December 31, 2014

Retained earnings, January 1, 2014
$31,000
Add: Net income

21,400

52,400
Less: Dividends

12,000
Retained Earnings December 31, 2014
$40,400

P2-2 (continued)
Tresh Corporation
Balance Sheet
December 31, 2014

Assets

Current Assets

Cash

$10,100

Accounts receivable

11,700

Prepaid insurance

3,500

Total current assets

$25,300
Property, plant, equipment

Equipment

$66,000

Less: Accumulated depreciation-equipment
17,600

48,400
Total assets

$73,700

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$18,300

Salary and wages payable

3,000

Total liabilities

$21,300
Stockholders' equity

Common stock

12,000

Retained earnings

40,400

Total

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