Exam 3: The Balance Sheet and Notes to the Financial Statements

The following totals are taken from the December 31, 2012, balance sheet of Streamer Company: Additional information: After making any necessary changes, what are the totals for Streamer's current assets and current liabilities?

Which of the following best describes contributed capital?

The following totals are taken from the December 31, 2011, balance sheet of Bartholomew Company: Additional information: After making any necessary changes, what are the totals for Bartholomew's long-term assets and long-term liabilities?

The accounts and balances shown below were gathered from Paynter Corporation's trial balance on December 31, 2011. All adjusting entries have been made. See information for Paynter Corporation above. The amount that should be reported as current liabilities on Paynter Corporation's balance sheet is

An operating cycle

Eagle Co. prepared a draft of its 2011 balance sheet. The draft statement reported current liabilities totaling $200,000. However, none of the following items were included in this preliminary total at December 31, 2011: At which amount should Eagle's current liabilities be correctly reported in the December 31, 2011, balance sheet?

Account balances and supplemental information for the Bighorn Corporation as of December 31, 2012, are given below: Prepare a properly classified balance sheet in report form for Bighorn Corporation as of December 31, 2012.

The president of the Howard Company is upset! The president has just received the first draft of the company's annual financial statements for the year ended December 31, 2011, prepared by the company's controller. The statements show an overdraft in one of the company's bank accounts as an item in the current liabilities section of the balance sheet. The company experienced a very difficult year during 2011, although the first month of 2012 has shown some improvement. The Howard Company is a public company and may wish to issue additional common shares in the near future. The proceeds of the stock issuance would be used to acquire new equipment that could prove vital in reversing the company's decline. Required: Has the controller properly reported the bank overdraft? What factors should be considered in reporting this item?

The disclosure of accounting policies

Orvis Company reported liabilities totaling $1,230,000 as of December 31, 2011. The following information relates to those liabilities: After considering these items, what should be the total of Orvis' reported liabilities?

Blues Corporation's trial balance included the following account balances at December 31, 2011: What amount should be included in the current liability section of Blues' December 31, 2011, balance sheet?

Below are selected accounts and their balances for the Stonefly Company as of December 31, 2012: Based on the above information, determine the amount of working capital at December 31, 2012.

The following changes in Patriot Corporation's account balances occurred during 2011: Patriot paid dividends of $39,000 during the year. There were no changes in Retained Earnings for 2011 except dividends and net income. What was Patriot's net income for 2011?

Which of the following is not a long-term investment?

Treasury stock should be reported

Which of the following statements regarding intangible assets is not correct?

The accounts and balances shown below were gathered from Paynter Corporation's trial balance on December 31, 2011. All adjusting entries have been made. The amount that should be reported as current assets on Paynter Corporation's balance sheet is

Your friend has just purchased one hundred shares of the common stock of the Ryan Corporation. Your friend notices that the company shows an amount of $5,000,000 labeled as bond payable in the balance sheet. You have just recently received your license as a CPA and your friend has come to you for advice. She begins by asking: "What are bonds payable and what should I know about them in terms of my investment in Ryan Corporation?" Required: How would you respond to the question posed by your friend?

The operating cycle

Which of the following items would normally be excluded from the computation of working capital?