ACCOUNTING 2101/6101- TESTING YOUR KNOWLEDGE CHAPTER 5 The Columbus Corporation

Question

ACCOUNTING 2101/6101- TESTING YOUR KNOWLEDGE CHAPTER 5 The Columbus Corporation began operations on January 1, 20x1. A preliminary draft ofa Page 1 balance sheet for the Columbus Corporation as of December 31, 20x5 is presented below Columbus Corporation Balance Sheet (draft) December 31, 20x5 Accounts with debit balances) Accounts receivable Bond Retirement Fund Buildings Cash Equipment Land $ 112,0o0 221,760 1,712,000 179,970 1,120,000 1,211,000 305,858 1,155 10,304 87,400 $ 4,961,447 Merchandise Inventory Office supplies Prepaid Insurance Treasury Stock Total (Accounts with credit balances) $ 350,000 Accounts payable Accumulated depreciation- buildings Accumulated depreciation - equipment Bonds payable (due October 1, 20x1) Capital - appreciated value of land Capital stock Dividends payable Income taxes payable Notes payable (short-term) Notes payable (long-term) Retained earnings 700,000 200,000 1,288,000 19,100 108,500 117,600 420,000 Total (Note: See next page for additional information.)

Explanation / Answer

COLUMBUS CORPORATION BALANCE SHEET AS ON DECEMBER 31, 20X5 LIABILITIES & SHAREHOLDERS EQUITY AMOUNT AMOUNT ASSETS AMOUNT AMOUNT CURRENT LIABILITIES CURRENT ASSETS ACCOUNTS PAYABLE $      336,000.00 CASH AND CASH EQUIVALENTS $      225,970.00 DIVIDENDS PAYABLE $        19,100.00 BONDS RETIREMENT FUND $      175,760.00 INCOME TAX PAYABLE $      108,500.00 ACCOUNTS RECEIVABLE, NET OF ALLOWANCE $      110,208.00 ACCRUED INTEREST ON NOTES PAYABLE $        13,440.00 INVENTORIES $      291,858.00 INTEREST PAYABLE $        10,500.00 OFFICE SUPPLIES $          1,155.00 NOTES PAYABLE $      117,600.00 PREPAID INSURANCE $        10,304.00 TOTAL CURRENT LIABILITIES $      605,140.00 TOTAL CURRENT ASSETS $      815,255.00 LONG-TERM LIABILITIES INVESTMENTS NOTES PAYABLE $      420,000.00 TREASURY STOCK $        87,400.00 DEFERRED INCOME TAX PAYABLE LANDHELD FOR SALE $                       -    BONDS PAYABLE $      700,000.00 RESTRICTED CASH $                       -    TOTAL LONG-TERM LIABILITIES $        1,120,000 TOTAL INVESTMENTS $        87,400.00 SHAREHOLDERS EQUITY: PROPERTY, PLANT & EQUIPMENT CAPITAL APPRECIATED VALUE OF LAND $      200,000.00 LAND $          1,211,000 COMMON STOCK - 100000 SHARES @ $2 PAR $             1,288,000 BUILDINGS $          1,712,000 AUTHORIZED AND ISSUED SHARES-40000 EQUIPMENT $          1,120,000 RETAINED EARNINGS $             1,599,015 ACCUMULATED DEPRECIATION $   (333,500.00) TOTAL SHAREHOLDERS'EQUITY $        2,887,015 NET PROPERTY, PLANT & EQUIPMENT $        3,709,500 INTANGIBLE ASSETS PATENTS $                       -    TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY $        4,612,155 TOTAL ASSETS $        4,612,155 Calculations 1 ACCOUNTS RECEIVABLE (BAD DEBT ALLOWANCE) =$112,000 X 1.6% = $          1,792 2 BOND RETIREMENT FUND: SHORT TERM INVESTMENT $     175,760 CASH $       46,000 $     221,760 3 ACCUMULATED DEPRECIATION: BUILDING (STRAIGHT LINE METHOD) =1712000/32 YEARS = $        53,500 EQUIPMENT:(DOUBLE DECLINING BALANCE METHOD) =1120000/8 YEARS X 2 = $     280,000 4 ACCOUNTS PAYABLE….DR $       14,000 TO INVENTORY $   14,000 (FOR INVENTORY RETURNED) 5 INTEREST ON BOND PAYABLE =($700,000X6%)/12*3 = $        10,500

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.