Accounting Chapter 03 Homework Sale Equipment For Cash No Gain Loss

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Alternate Exercises and Problems 31
Chapter 3 The Balance Sheet and Financial Disclosures
EXERCISES
Exercise 3-1
1. b Note receivable, due in 2 years 10. a Inventories
2. a Accounts receivable 11. d Goodwill
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32 Intermediate Accounting, 8/e
Exercise 3-2
CURTIS CORPORATION
Balance Sheet
At December 31, 2016
Assets
Current assets:
Cash and cash equivalents ..................................
$ 70,000
Marketable securities .........................................
15,000
Investments:
Note receivable ..................................................
50,000
Property, plant, and equipment:
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable ...............................................
$ 45,000
Long-term liabilities:
Bonds payable ....................................................
100,000
Shareholders’ equity:
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Exercise 3-3
1. Depreciation method A
Exercise 3-4
1. Current ratio [$150 + 400 + 500] ÷ $600 = 1.75
Exercise 3-5
Current Acid-test Debt to
Action Ratio Ratio Equity Ratio
1. Issuance of common stock for cash I I D
2. Purchase of inventory on account I D I
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PROBLEMS
Problem 3-1
ALEXANDRIA EXPLORATION CORPORATION
Balance Sheet
At December 31, 2016
Assets
Current assets:
Cash and cash equivalents .....................................................
$ 62,000
Short-term investments ..........................................................
130,000
Investments:
Land held for sale ...................................................................
$ 20,000
Note receivable ......................................................................
50,000
Total investments ............................................................
70,000
Property, plant, and equipment:
Land .......................................................................................
80,000
Intangibles:
Goodwill ................................................................................
36,000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable ...................................................................
$ 125,000
Total current liabilities ....................................................
365,000
Shareholders’ equity:
Common stock, no par value; 1,000,000 shares
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Alternate Exercises and Problems 35
Problem 3-2
TILLAMOO CHEESE COMPANY
Balance Sheet
At December 31, 2016
Assets
Current assets:
Cash and cash equivalents ......................................................
$ 190,000
Investments:
Investment in bonds ...............................................................
260,000
Property, plant, and equipment:
Intangibles:
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable ..................................................................
$ 260,000
Long-term liabilities:
Notes payable ........................................................................
100,000
Shareholders’ equity:
Common stock, no par value; 2,000,000 shares
authorized; 1,000,000 shares issued and outstanding .........
1,500,000

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