Koch Corporation’s adjusted trial balance contained the following asset accounts Answer

Question 1
Koch Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2014: Cash $7,000; Land $40,000; Patents $12,500; Accounts Receivable $90,000; Prepaid Insurance $5,200; Inventory $30,000; Allowance for Doubtful Accounts $4,000; Equity Investments (trading) $11,000

Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)

Question 2
Patrick Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2014: Prepaid Rent $12,000; Goodwill $50,000; Franchise Fees Receivable $2,000; Franchises $47,000; Patents $33,000; Trademarks $10,000.
Prepare the intangible assets section of the balance sheet.

Question 3
Presented below are a number of balance sheet accounts of Deep Blue Something, Inc. For each of the accounts below, indicate the proper balance sheet classification.

(a) Investment in Preferred Stock.
(b) Treasury Stock.
(c) Common Stock.
(d) Dividends Payable.
(e) Accumulated Depreciation-Equipment.
(f)(1) Construction in Process (Constructed for another party).
(f)(2) Construction in Process (Constructed for the use of Deep Blue Something, Inc.).
(g) Petty Cash.
(h) Interest Payable.
(i) Deficit.
(j) Equity Investments (trading).
(k) Income Taxes Payable.
(l) Unearned Subscription Revenue.
(m) Work in Process.
(n) Salaries and Wages Payable.

Question 4
Assume that Denis Savard Inc. has the following accounts at the end of the current year.
1 Common Stock 14 Accumulated Depreciation-Buildings.
2 Discount on Bonds Payable. 15 Cash Restricted for Plant Expansion.
3 Treasury Stock (at cost). 16 Land Held for Future Plant Site.
4 Notes Payable (short-term). 17 Allowance for Doubtful Accounts.
5 Raw Materials 18 Retained Earnings.
6 Preferred Stock (Equity) Investments (long-term). 19 Paid-in Capital in Excess of Par-Common Stock.
7 Unearned Rent Revenue. 20 Unearned Subscriptions Revenue.
8 Work in Process. 21 Receivables-Officers (due in one year).
9 Copyrights. 22 Inventory (finished goods).
10 Buildings. 23 Accounts Receivable.
11 Notes Receivable (short-term). 24 Bonds Payable (due in 4 years).
12 Cash. 25 Noncontrolling Interest.
13 Salaries and Wages Payable.

Prepare a classified balance sheet in good form. (List Current Assets in order of liquidity. For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers, Inventory, Bonds Payable, and Restricted Cash, enter the account name only and do not provide the descriptive information provided in the question.)
Question 5
Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2014.
Inventory (finished goods) $ 52,000 Cost of Goods Sold $21,00,000
Unearned Service Revenue $90,000 Notes Receivable $40,000
Equipment $2,53,000 Accounts Receivable $1,61,000
Inventory (work in process) $34,000 Inventory (raw materials) $2,07,000
Cash $37,000 Supplies Expense $60,000
Equity Investments (short-term) $31,000 Allowance for Doubtful Accounts $12,000
Customer Advances $36,000 Licenses $18,000
Restricted Cash for Plant Expansion $50,000 Additional Paid-in Capital $88,000
Treasury Stock $22,000

The following additional information is available.

1 Inventories are valued at lower-of-cost-or-market using LIFO.
2 Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $50,600.
3 The short-term investments have a fair value of $29,000. (Assume they are trading securities.)
4 The notes receivable are due April 30, 2016, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrued interest due on December 31, 2014.)

5 The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $50,000 are pledged as collateral on a bank loan.

6 Licenses are recorded net of accumulated amortization of $14,000.
7 Treasury stock is recorded at cost.

Prepare the current assets section of Yasunari Kawabata Company’s December 31, 2014, balance sheet, with appropriate disclosures. (List Current Assets in order of liquidity. Enter account name only and do not provide the descriptive information provided in the question.)
Question 6
Presented below is the trial balance of Scott Butler Corporation at December 31, 2014.
Debit Credit
Cash $   197,000
Sales $ 8,100,000
Debt Investments (trading) (cost, $145,000) 1,53,000
Cost of Goods Sold 48,00,000
Debt Investments (long-term) 2,99,000
Equity Investments (long-term) 2,77,000
Notes Payable (short-term) $90,000
Accounts Payable $4,55,000
Selling Expenses 20,00,000
Investment Revenue $63,000
Land 2,60,000
Buildings 10,40,000
Dividends Payable $1,36,000
Accrued Liabilities $96,000
Accounts Receivable 4,35,000
Accumulated Depreciation-Buildings $1,52,000
Allowance for Doubtful Accounts $25,000
Administrative Expenses 9,00,000
Interest Expense 2,11,000
Inventory 5,97,000
Gain (extraordinary) $80,000
Notes Payable (long-term) $9,00,000
Equipment 6,00,000
Bonds Payable $10,00,000
Accumulated Depreciation-Equipment $60,000
Franchises 1,60,000
Common Stock ($5 par) $10,00,000
Treasury Stock 1,91,000
Patents 1,95,000
Retained Earnings $78,000
Paid-in Capital in Excess of Par $80,000
        Totals $1,23,15,000 $1,23,15,000

Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)
Question 7
For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose.
Sr. No. Subsequent (Post-Balance-Sheet) Events

1 Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end.
2 Introduction of a new product line.
3 Loss of assembly plant due to fire.
4 Sale of a significant portion of the company’s assets.
5 Retirement of the company president.
6 Prolonged employee strike.
7 Loss of a significant customer.
8 Issuance of a significant number of shares of common stock.
9 Material loss on a year-end receivable because of a customer’s bankruptcy.
10 Hiring of a new president.
11 Settlement of prior year’s litigation against the company (no loss was accrued).
12 Merger with another company of comparable size.

Question 8
Carlton Company is involved in four separate industries. The following information is available for each of the four industries.
Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets
W $60,000 $15,000 $1,67,000
X 10,000 3,000 83,000
Y 23,000 -2,000 21,000
Z 9,000 1,000 19,000
$1,02,000 $17,000 $2,90,000

Determine which of the operating segments are reportable based on the:

Reportable Segments

(a) Revenue test.
(b) Operating profit (loss) test.
(c) Identifiable assets test.

Question 9
As loan analyst for Utrillo Bank, you have been presented the following information.
Toulouse Co. Lautrec Co.
Cash $1,20,000 $3,20,000
Receivables 2,20,000 3,02,000
Inventories 5,70,000 5,18,000
   Total current assets 9,10,000 11,40,000
Other assets 5,00,000 6,12,000
   Total assets $14,10,000 $17,52,000

Liabilities and Stockholders’ Equity
Current liabilities $3,05,000 $3,50,000
Long-term liabilities 4,00,000 5,00,000
Capital stock and retained earnings 7,05,000 9,02,000
   Total liabilities and stockholders’ equity $14,10,000 $17,52,000
Annual sales $9,30,000 $15,00,000
Rate of gross profit on sales 30 % 40 %

GP $2,79,000 $6,00,000
COS $6,51,000 $9,00,000
Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted.
Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.)

For getting the instant digital download solution, Please click on the “PURCHASE” link below to get “Koch Corporation’s adjusted trial balance contained the following asset accounts Answer”.

Please click on the below link and make an instant purchase. You will be guided to the PAYPAL Standard payment page wherein you can pay and you will receive an email immediately with a download link. Please note that in case of technical glitch, the solutions will be emailed to you within 24 hours.

In case you find any problem in getting the download link or downloading the tutorial, please send us an email on mail@genietutorial.com

Koch Corporation’s adjusted trial balance contained the following asset accounts Answer