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BALANCE SHEET
14. The December 31, 2006 balance sheet should report current
liabilities at
a. 8,100,000
b. 7,950,000
c. 9,100,000
d. 7,350,000
The December 31, 2006 balance sheet of East Company contained the
following current assets:
Cash 3,200,000
Accounts receivable 2,000,000
Inventory 2,800,000
Deferred charges 200,000
8,200,000
An examination revealed that accounts receivable consisted of the
following items:
Customers’ accounts 1,420,000
Employees’ account-current 240,000
Advances to subsidiary 260,000
Allowance for uncollectible accounts (120,000)
Claims against shipper for goods lost in transit 200,000
2,000,000
15. On December 31, 2006, East Company should report total current
assets at
a. 7,740,000
b. 7,780,000
c. 7,940,000
d. 8,200,000
Stockholders’ equity
Common stock 5,000,000
Retained earnings 500,000
Total 5,500,000
16. In its 2006 statement of stockholders’ equity, United’s total amount
of stockholders’ equity at December 31, 2006 is
a. 5,000,000
b. 5,500,000
c. 5,800,000
d. 5,200,000
The accounts below were taken form the unadjusted trial balance of
Kasie Company as at December 31, 2006:
Cash, net of bank overdraft of P150,000 600,000
Notes receivable (including discounted note of 500,000
P100,000)
Trade accounts receivable, net of customers’ credit
balances of P50,000 700,000
Merchandise inventory 800,000
Trade accounts payable, net of creditors’ debit
balances of P100,000 800,000
21. What is the correct amount of current assets on December 31,
2006?
a. 2,800,000
b. 2,700,000
c. 2,600,000
d. 2,900,000
The following amounts were taken from the unadjusted trial balance of
Tank Company on December 31, 2006:
Accounts payable 900,000
Accounts receivable 800,000
Accrued interest payable 50,000
Cash 200,000
Dividends payable 250,000
Income tax payable 100,000
Trading securities 1,000,000
Notes receivable 1,500,000
Merchandise inventory 750,000
Bonds payable, P500,000 due September 30 annually 2,000,000
Contingent liabilities 400,000
Accrued expenses 350,000
The accounts receivable balance includes customers’ deposit of
P200,000. The market value of the trading securities is P700,000. The
balance of the notes receivable includes P300,000 of note discounted
for which the company is contingently liable.
24. What is the total current assets?
a. 4,150,000
b. 3,850,000
c. 3,650,000
d. 4,250,000
The following trial balance of Trey Company at December 31, 2006 has
been adjusted except for income tax expense:
Cash 550,000
Accounts receivable, net 1,650,000
Prepaid taxes 350,000
Accounts payable 140,000
Common stock 500,000
Additional paid in capital 680,000
Retained earnings 630,000
Foreign currency translation adjustment 400,000
Revenue 3,600,000
Expenses 2,600,000
5,550,000 5,550,000
During 2006, estimated tax payments of P350,000 were charged to
prepaid taxes, Trey has not yet recorded income tax expense. There
were no differences between financial and taxable income. Trey’s tax
rate is 35%.
Included in accounts receivable is P500,000 due from a customer.
Special terms granted to this customer require payment in equal
semiannual installments of P125,000 every April 1 and October 1.
26. In Trey’s December 31, 2006 balance sheet, what amount should
be reported as total current assets?
a. 1,950,000
b. 2,200,000
c. 2,300,000
d. 2,550,000
27. In Trey’s December 31, 2006 balance sheet, what amount should
be reported as total retained earnings?
a. 1,680,000
b. 1,200,000
c. 1,280,000
d. 1,630,000
39. The correct total of current liabilities on December 31, 2006 should
be
a. 3,450,000
b. 3,400,000
c. 3,950,000
d. 3,700,000