Problem 3–6 (concluded)
(1) $67,000 + 50,000 in treasury bills considered a cash equivalent.
Requirement 2
Cash equivalents—the policy used to determine what items are considered to
be cash equivalents.
Accounts receivable, net—disclosure on the face of the statement of the
allowance for uncollectible accounts, if material.
Investments—information about the types of investments and the accounting
method used to value the investments.
Problem 3–7
HUBBARD CORPORATION
Balance Sheet
At December 31, 2018
Assets
Current assets:
Cash ………………………………………………………………………………. $ 60,000
Investments:
Property, plant, and equipment:
Land (1) …………………………………………………………………………. 130,000
Intangible assets:
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable ……………………………………………………………. $ 215,000
Long-term liabilities:
Shareholders’ equity:
Problem 3–8
Solve for missing amounts:
Liabilities Equity = 1.2
Beginning retained earnings + Net income – Dividends = Ending retained earnings
Total equity – Retained earnings = Common stock
Problem 3–8 (concluded)
SANDERSON MANUFACTURING COMPANY
Balance Sheet
At December 31, 2018 ($ in 000s, except share data)
Assets
Current assets:
Cash ………………………………………………………………………………. $ 1,250
Property, plant, and equipment:
Intangible assets:
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable ……………………………………………………………. $ 5,200
Long-term liabilities:
Deferred revenue ……………………………………………………………. $ 1,500
Shareholders’ equity:
Common stock, no par, 400,000 shares authorized,…………….
Problem 3–9
HHD, INC.
Balance Sheet
At December 31, 2018
Assets
Current assets:
Cash
………………………………………………………………………………………
$ 150,000
Investment in stocks
………………………………………………………………………………………
90,000
………………………………………………………………………………..
Investments:
………………………………………………………………………………..
Property, plant, and equipment:
………………………………………………………………………………………
………………………………………………………………………………..
Intangible assets:
Patent
………………………………………………………………………………………
110,000
……………………………………………………………………………..
Liabilities and Shareholders’ Equity
Current liabilities:
Long-term liabilities:
Shareholders’ equity:
Common stock, no par, 500,000 shares authorized,
200,000 shares issued and outstanding …………………………. 1,000,000
Problem 3–10
MELODY LANE MUSIC COMPANY
Balance Sheet
At December 31, 2018
Assets
Current assets:
Cash (1) ……………………………………………………… $167,000
Property, plant, and equipment:
Equipment and furniture ……………………………… $ 40,000
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable (2) …………………………………… $ 21,000
Shareholders’ equity:
Common stock, no par, 100,000 shares
authorized, 20,000 shares issued and
outstanding ……………………………………………….. $100,000