Name: Date: Resolve the exercises Exercise 1 (50 points) The following items wer
ID: 2567983 • Letter: N
Question
Name: Date: Resolve the exercises Exercise 1 (50 points) The following items were taken from the financial statements of Rivera Company. (All dollars are in thousands.) Mortgage payable $ 2,340 Accumulated depreciation 3,560 Prepaid expenses 980 Accounts payable 1,555 Property, plant, and equipment 11,500 Notes payable due after 2017 1,200 Long-term investments 1,300 Owner's capital 14,026 Short-term investments 3,690 Accounts receivable 1,696 Notes payable due in 2017 1,000 Inventories 1,765 Cash 2,750 Instructions Prepare a classified balance sheet in good form as of December 31, 2016. Exercise 2 (50 points) The adjusted trial balance of Bennett Company contained the following information: Debit Credit Sales Revenue $530,000 Sales Returns and Allowances $ 12,000 Sales Discounts 7,000 Cost of Goods Sold 318,000 Freight-Out 2,000 Advertising Expense 15,000 Interest Expense 13,000 Salaries and Wages Expense 90,000 Utilities Expense 23,000 Depreciation Expense 12,000 Interest Revenue 37,000 Instructions 1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2016. 2. Prepare a single-step income statement for the year ended December 31, 2016.Explanation / Answer
Note:
Given both questions are separate & independent. So as per rule I am answering first question.
Exercise – 1:
Classified Balance Sheet
Assets:
(In thousands)
Current Assets;
Cash
2750
Account receivables
1696
Inventory
1765
Prepaid expenses
980
Short-term investment
3690
Total current assets
10881
Gross property plant & equipment ….11500
Less: Accumulated depreciation…….3560
7940
Long-term investment
1300
Total non-current assets
9240
Total Assets
20121
Current liabilities;
Notes payable due in 2017
1000
Accounts payable
1555
Total current liabilities
2555
Non-current liabilities;
Mortgage payable
2340
Notes payable due after 2017
1200
Total non-current liabilities
3540
Total liabilities
6095
Stockholders’ equity;
Owner’s capital
14026
Total Stockholders’ equity
14026
Total liabilities and Stockholders’ equity
20121
Classified Balance Sheet
Assets:
(In thousands)
Current Assets;
Cash
2750
Account receivables
1696
Inventory
1765
Prepaid expenses
980
Short-term investment
3690
Total current assets
10881
Gross property plant & equipment ….11500
Less: Accumulated depreciation…….3560
7940
Long-term investment
1300
Total non-current assets
9240
Total Assets
20121
Current liabilities;
Notes payable due in 2017
1000
Accounts payable
1555
Total current liabilities
2555
Non-current liabilities;
Mortgage payable
2340
Notes payable due after 2017
1200
Total non-current liabilities
3540
Total liabilities
6095
Stockholders’ equity;
Owner’s capital
14026
Total Stockholders’ equity
14026
Total liabilities and Stockholders’ equity
20121
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