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

A corporation had the following account balances on its December 31, year 1, and post-closing trial balance: Common shares \ 1,000 Preterred 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:

Accounts Receivable pledged as collateral must be shown separately from other receivables on the face of the balance sheet.

Z corporation owed the following notes payable, which will mature during the coming year. The corporation plans to settle the notes as follows: Note payable A: Refinance by issuing a new 10-year bond. Note payable B: Give the holder merchandise inventory. Note payable C: Give the creditor their long-term investment in Z Corporation common shares. Which note is properly classified as a current liability?

Non-controlling interest will appear as a component of shareholder equity on the consolidated statements when a company has subsidiaries that it does not fully own.