Exam 4: Statements of Financial Position and Changes in Equity; Disclosure Notes

A company reported the following account balances on the balance sheets for year 1 and year 2 (in 000's): The increase or decrease in working capital for year 2 is:

A corporation had the following account balances on its December 31,year 1,and post-closing trial balance: Common shares......................... \ 1,000 Preferred shares.................. 760 Appropriated for future plant expansion..... 200 Unappropriated retained earnings............ 100 Bond sinking fund................ 80 Additional information: During the year a $50 cash dividend on preferred shares and a $50 cash dividend on common shares were declared.At December 31,year 1,total stockholders' equity is:

Prepaid insurance usually should be classified on the balance sheet under the caption:

On December 31,a corporation had a working capital ratio of 2,and reported the following accounts. Therefore,the balance in the allowance for doubtful accounts was:

At the end of its first year of operations,and before the adjusting entries at December 31,a company had a balance in accounts receivable of $250,000.The adjustments included a $2,000 write-off of an uncollectible account and recording bad debt expense of $3,500.What should the company report on its balance sheet at December 31,as net accounts receivable?

A corporation discovered the following information subsequent to the year 1 balance sheet date,but prior to its issuance: (A) the corporation will be able to sell $20,000 common shares as originally planned. (B) The president of the corporation had a heart attack five days after the balance sheet date. (C) a long-time major customer filed for bankruptcy and would not be able to pay the large debt owed to the company. (D) due to an electrical shortage,the estimated useful life of a large machine was reduced by three years. How many of the above items must be disclosed in the tabular portion of the year 1 financial statements?

Which one of the following is a contingent loss that is required to be disclosed only in a note to the financial statements?

Where on the statement of financial position would a company's total comprehensive income for the year be included under IFRS?

The following transactions were completed by a corporation: (a) At the beginning of the year issued $25,000,10 percent bonds payable (interest payable annually),due in 10 years,for $24,000 cash.Any bond premium or discount will be amortized on the straight-line basis.Give the entry to record the first interest payment. (b) Issued 3,500 shares of its common shares and received cash,$17,500,which was credited in full to the common shares subscribed account.Give the required correcting entry: (c) The working capital ratio for the company at the end of year one was 1.5 and the current assets,$156,750.Therefore,the current liabilities amounted to $______________________.

Long-term liabilities are distinguished from current liabilities on the basis of:

A corporation sold 10,000 shares of its no-par common for $10.00 per share.The corporation will not sell its shares for less than $6.00 per share,because this is "necessary" to protect the bondholders.The corporation should record this transaction as follows: