Fill in the blanks labeled from (a) through (l).
Answer to Problem 8E
The balance sheet of D Company is prepared below:
D Company | ||
Balance Sheet | ||
December 31 | ||
2016 | 2017 | |
Current assets | 26,900 | 25,000 |
Long-term investments | 19,200 | 22,200 |
Property, plant and equipment (net) | 85,700 | 92,800 |
Intangible assets | 10,400 | 9,200 |
Total assets | $142,200 | $149,200 |
Current liabilities | 14,500 | 12,300 |
Long-term liabilities | 35,800 | 34,900 |
Total liabilities | 50,300 | 47,200 |
Common stock, $5 par | 20,000 | 20,000 |
Additional paid-in capital | 15,000 | 15,000 |
Total contributed capital | 35,000 | 35,000 |
50,000 | 60,000 | |
Accumulated other comprehensive income | 6,900 | 7,000 |
Total shareholders' equity | 91,900 | 102,000 |
Total liabilities and shareholders' equity | $142,200 | $149,200 |
Table (1)
Explanation of Solution
Balance sheet: This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (
Calculate the amount of current assets (a) for 2016:
Hence, the amount of current assets for 2016 is $26,900.
Calculate the amount of common stock (e) for 2016:
Hence, the amount of common stock for 2016 is $20,000.
Note: As the company did not issue any common stock during 2017, the common stock of 2016 is equal to common stock of 2017.
Calculate the amount of total contributed capital (c) for 2016:
Hence, the amount of total contributed capital for 2016 is $35,000.
Calculate the amount of total stockholders’ equity (f) for 2016:
Hence, the amount of total stockholders’ equity for 2016 is $91,900.
Compute the amount of total liabilities (d) for 2016:
Hence, the amount of total liabilities for 2016 is $50,300.
Calculate the amount of long-term liabilities (b) for 2016:
Hence, the amount of long-term liabilities for 2016 is $35,800.
Calculate the amount of additional paid-in capital (k) for 2017:
Hence, the amount of additional paid in capital for 2017 is $15,000.
Note: As the company did not issue any common stock during 2017, the additional paid in capital of 2016 is equal to additional paid in capital of 2017.
Calculate the amount of total contributed capital (g) for 2017:
Hence, the amount of total contributed capital for 2017 is $35,000.
Calculate the amount of total stockholders’ equity (l) for 2017:
Hence, the amount of total stockholders’ equity for 2017 is $102,000.
Compute the amount of total liabilities (i) for 2017:
Hence, the amount of total liabilities for 2017 is $47,200.
Compute the amount of total assets (j) for 2017:
Hence, the amount of total assets for 2017 is $149,200.
Calculate the amount of long-term investments (h) for 2017:
Hence, the amount of long-term investments for 2017 is $22,200.
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Chapter 4 Solutions
EBK INTERMEDIATE ACCOUNTING: REPORTING
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