4-21
E4-10
STEVENS COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $ 2,300
Temporary investments in marketable
Long-Term Investments
Investment in held-to-maturity bonds 10,000
Plant and Equipment
Land $ 8,100
Buildings and equipment $35,600
Less: Accumulated depreciation (9,200) 26,400
E4-10 (continued)
Stockholders’ Equity
Contributed Capital
Common stock, $10 par $12,000
4-23
POWDER COMPANY
Statement of Changes in Stockholders’ Equity
For Year Ended December 31, 2010
Preferred
Stock
$100 par
Common
Stock
$5 par
Additional
Paid-in Capital
on Preferred
Stock
Additional
Paid-in Capital
on Common
Stock
Retained
Earnings
Total
Balances, 1/1/10
$ 92,800
$37,400
$21,500
$58,700
$185,700
$396,100
E4-11
E3-11
3-30
OSBORNE COMPANY
Statement of Changes in Stockholders’ Equity
For Year Ended December 31, 2010
Preferred
Stock
$100 par
Common
Stock
$5 par
Additional
Paid-in Capital
on Preferred
Stock
Additional
Paid-in
Capital
on Common
Stock
Retained
Earnings
Total
Balances, 1/1/10
Common stock issued
$ 60,000
$80,000
6,000
$12,000
$170,000
24,000
$209,000
$531,000
30,000
4-24
E4-12
SOLUTIONS TO PROBLEMS
P4-1
1. D
2. F
12. E
13. H
14. A
15. B
16. C
17. E
4-26
P4-2 OLIVER MANUFACTURING COMPANY
Balance Sheet
December 31, 2010
Assets Liabilities
Current Assets Current Liabilities
Cash on hand Notes payable (short-term)
Cash in bank Accounts payable
Insurance Premium on bonds payable
Office supplies Mortgage payable (long-term portion)
Total current assets Accrued pension cost
Total long-term liabilities
Buildings
Less: Accumulated depreciation Contributed Capital
Machinery Preferred stock
Less: Accumulated depreciation Common stock
Equipment Additional paid-in capital on:
P4-3
GREEN MANUFACTURING COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $ 7,200
Total current assets $ 81,100
Long-Term Investments
Bond sinking fund $ 7,700
Investment in available-for-sale stock 16,400
Total long-term investments 24,100
P4-3 (continued)
Liabilities
Current Liabilities
Notes payable $ 5,000
Accounts payable 20,900
Interest payable 500
Stockholders’ Equity
Contributed Capital
Preferred stock, $100 par $30,000
Additional parenthetical or note disclosures which might be made include:
1. Inventory costing and valuation methods(s) for raw materials, goods in
process, and finished goods.
4-29
P4-3 (continued)
P4-4
1.
INTERNATIONAL PRODUCTS COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $ 8,200
Accounts receivable $13,800
Less: Allowance for doubtful accounts (700) 13,100
4-30
P4-4 (continued)
1. (continued)
Liabilities
Current Liabilities
Accounts payable $16,500
Current interest payable 2,900
Stockholders’ Equity
Contributed Capital
Preferred stock $50 par $10,000
4-31
P4-4 (continued)
2. Note: The account titles in this IFRS solution are the same as in the book. They may
be different in an actual IFRS balance sheet.
INTERNATIONAL PRODUCTS COMPANY
Balance Sheet
December 31, 2010
Assets
Noncurrent Assets
Investment in held-to-maturity bonds $ 9,000
Cash $ 8,200
Accounts receivable $13,800
Less: Allowance for doubtful accounts (700) 13,100
Inventory 24,400
Prepaid items
Insurance $ 900
4-32
P4-4 (continued)
2. (continued)
Liabilities
Noncurrent Liabilities
Bonds payable (due 2016) $29,000
Less: Discount on bonds payable (2,000)
$27,000
P4-5
MEADOWS COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $ 7,900
Marketable securities (short-term) 10,100
Liabilities
Current Liabilities
Accounts payable $ 9,800
P4-5 (continued)
Stockholders’ Equity
Contributed Capital
Common stock, $5 par $ 29,600
Additional paid-in capital 50,600
P4-6
1. EUBANKS COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $11,600
Temporary investments in marketable
securities (Note 1) 19,100
P4-6 (continued)
1. (continued)
Liabilities
Current Liabilities
Accounts payable $58,000
Income taxes payable 24,700
Stockholders’ Equity
Contributed Capital
Preferred stock, $100 par, 1,000 shares
2. (1) Summary of significant accounting policies:
a. Inventories are valued at the lower of average cost or market.
b. Property, plant, and equipment are reported at cost less accumulated
4-36
3-30
P4-6 (continued)
2. (continued)
(2) Composition of inventories:
The inventories of the company as of December 31, 2010 are made up of
the following components:
(3) Composition of property, plant, and equipment:
The property, plant, and equipment of the company as of December 31,
2010 consists of the following:
Item
Cost
Accumulated
Depreciation
Book
Value
3. Current ratio = Current assets ÷ Current liabilities
4-37
P4-7
1. BLAZER COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $ 13,800
Notes receivable 17,000
Accounts receivable $37,100
Total Assets $381,500
Liabilities
Current Liabilities
Accounts payable $ 44,200
Stockholders’ Equity
Contributed Capital
Preferred stock, $50 par, 2,000 shares
authorized, 640 shares issued $ 32,000
BLAZER COMPANY
Statement of Changes in Stockholders’ Equity
For Year Ended December 31, 2010
Preferred
Stock
$50 par
Common
Stock
$10 par
Additional
Paid-in Capital
on Preferred
Stock
Additional
Paid-in Capital
on Common
Stock
Retained
Earnings
Total
P4-7 (continued)
2.
P4-7 (continued)
3. (1) Summary of significant accounting policies:
a. The straight-line method is used to depreciate property and equipment
(3) Composition of property, plant, and equipment:
Item
Cost
Accumulated
Depreciation
Book
Value
(4) Composition of long-term liabilities:
Item
Maturity Date
Face Value
Unamortized
Premium (Discount)
Book
Value
12% bonds
12/31/2015
$36,000
$(1,000)
$35,000
(5) Subsequent events:
On January 15, 2011, a building with a cost of $20,000 and a book value of
4-40
P4-8
CABLE COMPANY
Balance Sheet
December 31, 2010
Assets
Current Assets
Cash $12,300
Liabilities
Current Liabilities
Accounts payable $22,700