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The financial statement columns of the worksheet for Booer Company as of December
31, 2015 are as follows:
Instructions
Prepare a classified balance sheet for Booer Company.
Answer:
For accounting purposes, business transactions should be kept separate from the
personal transactions of the owners of the business.
Answer:
Distinguish between the cost and equity methods of accounting for investments in
stocks.
Answer:
Three plans for financing a $20,000,000 corporation are under consideration by its
organizers. Under each of the following plans, the securities will be issued at their par
or face amount and the income tax rate is estimated at 30%.
It is estimated that income before interest and taxes will be $5,000,000.
Instructions
Determine for each plan, the expected net income and the earnings per share on
common stock.
Answer:
Iverson Company purchased a delivery truck for $45,000 on January 1, 2015. The truck
was assigned an estimated useful life of 100,000 miles and has a residual value of
$10,000. The truck was driven 18,000 miles in 2015 and 22,000 miles in 2016.
Compute depreciation expense using the units-of-activity method for the years 2015
and 2016.
Answer:
The four major classifications of assets in a classified balance sheet are:
________________, ________________, ________________ and ________________.
Answer:
The Fair Value Adjustment account is a balance sheet account. Identify the asset
account it is related to. Explain how this account is increased and describe the
procedure followed when its related asset account is disposed of.
Answer:
Selected financial information for Trant Corporation is presented below.
Instructions
Prepare a schedule showing a horizontal analysis for 2016 using 2015 as the base year.
Answer:
