BE5-1

Harding Corporation Trial Balance Dec. 31, 2014

Account Receivables
Inventory

$ 110,000.00
$ 290,000.00

Allowance for
doubtful account
Patents
Prepaid Insurance
Accounts Payable

$
$
$
$

8,000.00
72,000.00
9,500.00
77,000.00

Cash

30,000.00

Answer to Question
Current Assets
Cash
Account Receivable
Less: Allowance for
doubtful accounts
Inventories
Prepaid Insurance

Dbt
$ 30,000.00

110,000.00

8,000.00

$ 102,000.00
$ 290,000.00
$
9,500.00

Total Current Assets

$ 431,500.00

BE5-3
Outcast CompanyTrial Balance Dec. 31, 2014
Prepaid Rent
Debt Investment
(Trading)

5200
56000

Unearned Fees
Land (Held for
investment)

17000

Notes Receivable (Long-term)

42000

39000

Answer to Question
Long-term investments
Held-to-maturity securities
Long-term note receivables
Land held for investment
Total Investments

56,000.00
42,000.00
39,000.00
137,000.00

BE5-5
Crane Corporation Trial Balance Dec. 31, 2014
Equity Investments
(Trading)
Goodwill
Prepaid Insurance
Patents
Franchises

21,000.00
150,000.00
12,000.00
220,000.00
130,000.00

Answer to Question
Goodwill
Patents
Franchises

150,000.00
220,000.00
130,000.00

Total intangibles

500,000.00

BE5-7
Thomas CorporationAdjusted Trial Balance Dec. 31, 2014
Bonds Payable (due in 3 years)
Accounts Payable
Notes Payable
Salaries and Wages Payable
Income Taxes Payable

100,000.00
72,000.00
22,500.00
4,000.00
7,000.00

Answer to Question
Current liabilities
Notes payable
Accounts payable
Accrued salaries
Income taxes payable

Total current liabilities ..............................

BE5-9

22,500.00
72,000.00
4,000.00
7,000.00

105,500.00

Relating to BE5-8
Non-current liabilities
Bonds payable
Pension liability
Provision for warranties

400,000.00
375,000.00
0

Total non-current liabilities

775,000.00

BE5-11
Stowe Company's December 31, 2014
Investment in Common Stock
Retained Earnings
Trademarks
Preferred Stock
Common Stock
Deferred Income Taxes
Paid-in Capital in Excess of Par
Noncontrolling interest

70,000.00
114,000.00
31,000.00
152,000.00
55,000.00
88,000.00
174,000.00
63,000.00

Answer to Question

Equity
Shared Capital Preference
Shared Capital-Ordinary
Shared Premium- Ordinary
Retained Earnings
Minority Interest

152,000.00
70,000.00
174,000.00
114,000.00
63,000.00

Total Equity

573,000.00

BE5-13
Ames Company reported 2014
Net income
Accounts Receivable increase
Accounts Payable increase
Depreciation expense

151,000.00
13,000.00
9,500.00
44,000.00

Answer to Question
Cash flows from Operating Activities
Net income
Adjustments to reconcile net income
Provided by operating activities
Depreciation Expense
44,000.00
Increase in accounts rece
(13,000.00)
increase in accounts paya
9,500.00
Net cash provided by operating activities

BE5-15

relates to BE5-14

151,000.00

40,500.00
191,500.00

Issuance of ornidary shares

Purchase of treasury shares
Payment of cash dividend
Retirement of bonds
Net cash used by financing

147,000.00
40,000.00
(95,000.00)
(100,000.00)
(8,000.00)

BE5-2

Koch Corporation Trial Balance Dec. 3

Cash
Land
Patents
Accounts Receivable
Prepaid Insurance
Inventory
Allowance for
Doubtful Account
Equity
Investment(Trading)
Answer to Question
Current Assets
Cash
Equity
Investment(Trading)
Accounts Receivable
Allowance for
Doubtful
InventoryAccount
Prepaid Insurance

90,000.00
4,000.00

Total Current Assets

BE5-4

Lowell CompanyTrial Balance Dec. 31

Inventory
Building
Accumulated
DepreciationEquipment
Equipment
Land (held for
investment)

Accumulated
Depreciation- Building
Land
Timberland

Answer to Question
Property, plant, and equipment
Land
Buildings
Less: Accumulated deprecia
Equipment
Less: Accumulated deprecia
Timberland
Total Plant Property

BE5-6

Patrick Corporation Adjusted Trial Ba

Prepaid Rent
Goodwill
Franchise Fees Receivable
Franchises
Patents
Trademarks

Answer to Question
Intangible assets
Capitalized development costs
Goodwill
Franchises
Patents
Trademarks

Total intangible assets

BE5-8

Adams Company Trial Balance Dec. 3

Accounts Payable
Pension Liability
Discount on Bonds Payable
Unearned Rent Revenue
Bonds Payable
Salaries and Wages Payable
Interest Payable
Income taxes Payable

Answer to Question
Current liabilities
Accounts payable
Unearned Rent Revenue
Wages payable
Interest payable
Provision for warranties
Income taxes payable
Total current liabilities

BE5-10

Hawthorn CorporationAdjusted Trial Balance De

Retained Earning
Common Stock
Bonds Payable
Paid-in Capital in Excess of Par- Common Stock
Goodwill
Accumulated other comprehensive loss

Noncontrolling interest

Answer to Question

Equity
Share capitalordinary shares
Share premiumordinary shares
Retained earnings
Accumulated other comprehensive income
Minority interest
Total equity

BE5-12
Keyser Beverage Company
Net income
Dividends Paid
Increase in Accounts Receivable
Increase in Accounts Payable
Purchase of Equipment (Capital Expend
Depreciation Expense
Issue of notes payable

Answer to Question
Operating Activities
Net Income
Depreciation Expense
4,000.00
Increase in accounts rec (10,000.00)
increase in accounts pay
7,000.00
Net cash provided by operating activit

Investing Activities
Purchase of equipment
Financing Activities
Issues notes payable
Dividends
Net Cash flow from financing
Net Change in cash

BE5-14

Martinez corporation engaged in the

Sales of land and building
Purchase of treasury stock
Purchase of land
payment of cash dividend
Purchase of equipment
issuance of common stock
Retirement of bonds
Answer to Question
Sales of Land and Building
Purchase of land
Purchase of equiment
Net Cash provided by investing activit

BE5-16

relates to BE5-14

Free Cash Flow Analysis

Less:

Net Cash Provided by operating activit

Purchase of equipment
purchase of land
dividends

Free Cashflo

Trial Balance Dec. 31, 2014

7,000.00
440,000.00
12,500.00
90,000.00
5,200.00
30,000.00
4,000.00
11,000.00

Dbt
7,000.00
11,000.00
86,000.00
30,000.00
5,200.00
139,200.00

rial Balance Dec. 31, 2014

126,860.00
212,110.00
20,010.00
191,270.00
55,030.00

51,540.00
70,560.00
71,090.00

nd equipment
70,560.00
212,110.00
51,540.00

160,570.00

191,270.00
20,010.00

171,260.00
71,090.00
473,480.00

n Adjusted Trial Balance Dec. 31, 2014

16,270.00
58,240.00
3,580.00
43,100.00
37,060.00
14,340.00

58,240.00
43,100.00
37,060.00
14,340.00

152,740.00

Trial Balance Dec. 31, 2014

220,000.00
375,000.00
29,000.00
41,000.00
400,000.00
27,000.00
12,000.00
29,000.00

220,000.00
41,000.00
27,000.00
12,000.00
0
29,000.00
329,000.00

ed Trial Balance Dec. 31, 2014

ar- Common Stock

ensive loss

120,000.00
750,000.00
100,000.00
200,000.00
55,000.00
150,000.00

35,000.00

750,000.00
200,000.00
120,000.00
(150,000.00)
35,000.00

ensive income

955,000.00

40,000.00
5,000.00
10,000.00
7,000.00
8,000.00
4,000.00
20,000.00

40,000.00

1,000.00
41,000.00

(8,000.00)

20,000.00
(5,000.00)
15,000.00
48,000.00

ion engaged in the following cash transactions

191,000.00
40,000.00
37,000.00
95,000.00
53,000.00
147,000.00
100,000.00

191,000.00
(37,000.00)
(53,000.00)
101,000.00

Net cash provided

400,000.00

400,000.00
(53,000.00)
(37,000.00)
(95,000.00)

215,000.00

E5-5
Current assets
Cash
Accounts receivable (net)
Inventory (lower-of-average-cost-or-mark
Equity investments (tr
124,650.00
Property, plant, and equipment
Buildings (net)
Equipment (net)
Land held for future use
Intangible assets
Goodwill
Cash surrender value of life insurance
Prepaid expenses
Current liabilities
Accounts payable
Notes payable (due next year)
Pension obligation
Rent payable
Premium on bonds payable
Long-term liabilities
Bonds payable
Stockholders equity
Common stock, $1.00 par, authorized
400,000 shares, issued
Additional paid-in capital
Retained earnings
?

231,950.00
341,950.00
402,950.00
144,650.00
574,650.00
164,650.00
179,650.00
81,950.00
91,950.00
13,950.00
139,650.00
126,950.00
86,650.00
50,950.00
54,950.00
504,650.00

291950
161950

Answer to Question

Current Assets
Cash
Trading Securities
Account Receivables
Less: Allowance for dou

231,950.00
124,650.00
360,900.00
18950

Inventories at ower of average

cor market
Prepaid expenses
Total current assets

341,950

402,950.00
13,950.00
1,115,450.00

Long term investments

Land held for future us
cash surrender of life
Insurance

179,650.00
91,950.00

Property, Plant, and Equipment

736,600.00
Building
161950
Less: accum. Depre. Bu
271,600.00
Office Equipment
106950
Less: accum depr. Offi
Intangible Assets
Goodwill

271,600.00

574,650.00
164,650.00

81,950.00
2,208,300.00

Total Assets
Liabilities and stockholder's equity
Account Payable
Notes Payale due next year
Rent Payable

139,650.00
126,950.00
50,950.00

Total Current liabilities

317,550.00

Long term liabilities

Bond Payable
add prmium bonds pa
pension obigation
Total Liabilities
Stock holders' Equity
Common Stock, $1 par
Additional paid capital
retained earnings

E5-6

504,650.00
54,950.00

559,600.00
86,650.00
963,800.00
291,950.00
161950
790,600.00

Total equity

1,244,500.00

total liabilities and equity

2,208,300.00

Geronimo Company
Cash
69,000.00
Accounts Receivables
40,500.00
Inventory
60,000.00
Equipment
84,000.00
Patents
21,000.00
Total

Answer to Question

274,500.00

Notes and Account Payable

Long-term Liabilities
Stockholders' equity

E5-12

Dbt
Cash $ 197,000
Sales Revenue $ 8,100,000
Debt Investments (trading) (at cost, $145,000) 153,000
Cost of Goods Sold 4,800,000
Debt Investments (long-term) 299,000
Equity Investments (long-term) 277,000
Notes Payable (short-term) 90,000
Accounts Payable 455,000
Selling Expenses 2,000,000
Investment Revenue 63,000
Land 260,000
Buildings 1,040,000
Dividends Payable 136,000
Accrued Liabilities 96,000
Accounts Receivable 435,000
Accumulated DepreciationBuildings 152,000
Allowance for Doubtful Accounts 25,000
Administrative Expenses 900,000
Interest Expense 211,000
Inventory 597,000
Gain (extraordinary) 80,000
Notes Payable (long-term) 900,000
Equipment 600,000
Bonds Payable 1,000,000
Accumulated DepreciationEquipment 60,000
Franchises 160,000
Common Stock ($5 par)
Treasury Stock 191,000
Patents 195,000
Retained Earnings 78,000
Paid-in Capital in Excess of Par
Totals

Answer to Question

198,690.00
157,760.00
4,804,760.00
300,690.00
278,690.00

2,004,760.00
260,000.00
1,041,690.00

439,760.00

901,800.00
212,800.00
598,690.00

604,760.00

160,000.00
195,760.00
195,000.00

12,355,610.00

VIVALDI CORPORATION
Statement of Financial Position
31-Dec-10
Non-current assets
Long-term investments
Investments in bonds
Investments in capital shares
Total long-term investments
Property, plant, and equipment
Land
Buildings
Less: Accum. depreciation
Equipment
Less: Accum. Depreciation
Total property, plant, and
equipment.
Intangible assets
Franchise
Patent
Total intangible assets
Total non-current assets
Current assets
Inventories
Accounts receivable
Less: Allowance for doubtful
accounts
Trading securities
Cash
Total current assets
Total assets

Equity and Liabilities

Equity
Share capitalordinary ($5 par) ......... $1,000,000
Retained earnings* .................................. 130,000
Accumulated other comprehensive
income..................................................... 80,000
Less: Treasury shares........................... 191,000
Total equity ....................................... $1,019,000
Non-current liabilities
Bonds payable .......................................... $1,000,000
Long-term notes payable....................... 900,000
Provision for pensions........................... 80,000
Total non-current liabilities ......... 1,980,000
Current liabilities
Short-term notes payable...................... $ 90,000

1,041,690.00
152,000.00
604,760.00
60,000.00

439,760.00
29,760.00

195,760.00

Accounts payable .................................... 455,000

Dividends payable ................................... 136,000
Accrued liabilities .................................... 96,000
Total current liabilities .................. 777,000
Total liabilities.................................. 2,757,000
Total equity and liabilities ............................ $3,776,000

Allowance for doubtful account

accum deprec. Buildings
Accum deprec. Equipment

18950
161950
106950

d Account Payable
m Liabilities
ders' equity

44,000.00
75,000.00
155,500.00

274,500.00

Cr
8,104,760.00

94,760.00
459,760.00
64,800.00

137,690.00
100,760.00
152,000.00
29,760.00

81,800.00
901,690.00
1,001,690.00
60,000.00
1,004,760.00

79,690.00
81,690.00
12,355,610.00

300,690.00
278,690.00
579,380.00
260,000.00
889,690.00
544,760.00
1,694,450.00
160,000.00
195,000.00
355,000.00
2,628,830.00
598,690.00
410,000.00
157,760.00
198,690.00
1,365,140.00
3,993,970.00

1,004,760.00
325,130.00
81,800.00
1,215,930.00
1,001,690.00
901,690.00
81,690.00
1,985,070.00
94,760.00

Sales
Investment Revenue
Cost of Good Solds
Selling expenses
Administratrive Expenses
Interest expenses
Net Income

Beg. Retained Earning

Net Income
Ending Retained Earnings

459,760.00
137,690.00
100,760.00
792,970.00
2,778,040.00
3,993,970.00

8,104,760.00
64,800.00
(4,804,760.00)
(2,004,760.00)
(901,800.00)
(212,800.00)
245,440.00

79,690.00
245,440.00
325,130.00