Exam 4: The Balance Sheet and the Statement of Shareholders Equity

Gerald Company's balance sheet information at the end of 2016 and 2017 is as follows: At the end of 2016, additional paid-in capital was twice the amount of common stock. During 2017 the company issued 1,000 shares of common stock. Required: Fill in the blanks lettered a through n. It is not necessary to calculate the information in alphabetical order.

Cash equivalents are securities that

Typically, the first note to the financial statements is the Summary of Significant Accounting Policies.

In common-size analysis, all balance sheet items and income statement items are presented as a percentage of total assets.

Which of the following is a measurement method that reflects historical value?

Which of the following is a measure of operating efficiency?

Companies typically recognize monetary assets and liabilities using present values.

Which of the following formulas represents working capital?

Which of the following is amortized over its useful life and reported at adjusted historical cost?

Additional paid-in capital represents

Adjusted present value is based on the present-day fair value adjusted to reflect the passage of time.

Which financial statement is also called the statement of financial position?

Time-series analysis is most closely associated with

Cross-sectional analysis is most closely associated with

Asset measurement methods that reflect historical values include acquisition cost and residual value.

Distributions to owners increase equity and investments by owners decrease equity.

Exhibit 4-1 Given the following information for Blue Bell Company for last year: -Refer to Exhibit 4-1. Blue Bell's return on common equity for the year was

The elements recognized on the balance sheet are assets, liabilities, revenues, and expenses.

FASB's definition of fair value of an asset is characterized as a measure of market-based exit value, which is the amount for which a company could sell the asset.

On January 1, 2016 Hammer Company listed the following shareholders’ equity section of its balance sheet: During 2016, the following transactions and events occurred and were recorded: 1.) Hammer issued 50,000 shares of common stock at $3 per share. 2.) Hammer earned net income of $175,900. 3.) Hammer paid a cash dividend of $.10 per share of common stock 4.) Hammer had an unrealized loss associated with some available-for-sale securities in the amount of $1,450. Required: Prepare Hammer's statement of shareholders' equity for 2016.