Question 1 Koch Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2014: Cash $7,000; Land $40,000; Patents $12,500; Accounts Receivable $90,000; Prepaid Insurance $5,200; Inventory $30,000;

Question 1 Koch Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2014: Cash $7,000; Land $40,000; Patents $12,500; Accounts Receivable $90,000; Prepaid Insurance $5,200; Inventory $30,000; Allowance for Doubtful Accounts $4,000; Equity Investments (trading) $11,000. Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.) Question 2 Patrick Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2014: Prepaid Rent $12,000; Goodwill $50,000; Franchise Fees Receivable $2,000; Franchises $47,000; Patents $33,000; Trademarks $10,000. Prepare the intangible assets section of the balance sheet. Question 3 Presented below are a number of balance sheet accounts of Deep Blue Something, Inc. For each of the accounts below, indicate the proper balance sheet classification. (a)        Investment in Preferred Stock. (b)        Treasury Stock. (c)        Common Stock. (d)        Dividends Payable. (e)        Accumulated Depreciation-Equipment. (f)(1)        Construction in Process (Constructed for another party). (f)(2)        Construction in Process (Constructed for the use of Deep Blue Something, Inc.). (g)        Petty Cash. (h)        Interest Payable. (i)        Deficit. (j)        Equity Investments (trading). (k)        Income Taxes Payable. (l)        Unearned Subscription Revenue. (m)        Work in Process. (n)        Salaries and Wages Payable. Question 4 Assume that Denis Savard Inc. has the following accounts at the end of the current year. 1        Common Stock        14        Accumulated Depreciation-Buildings. 2        Discount on Bonds Payable.        15        Cash Restricted for Plant Expansion. 3        Treasury Stock (at cost).        16        Land Held for Future Plant Site. 4        Notes Payable (short-term).        17        Allowance for Doubtful Accounts. 5        Raw Materials        18        Retained Earnings. 6        Preferred Stock (Equity) Investments (long-term).        19        Paid-in Capital in Excess of Par-Common Stock. 7        Unearned Rent Revenue.        20        Unearned Subscriptions Revenue. 8        Work in Process.        21        Receivables-Officers (due in one year). 9        Copyrights.        22        Inventory (finished goods). 10        Buildings.        23        Accounts Receivable. 11        Notes Receivable (short-term).        24        Bonds Payable (due in 4 years). 12        Cash.        25        Noncontrolling Interest. 13        Salaries and Wages Payable. Prepare a classified balance sheet in good form. (List Current Assets in order of liquidity. For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers, Inventory, Bonds Payable, and Restricted Cash, enter the account name only and do not provide the descriptive information provided in the question.) Question 5 Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2014. Inventory (finished goods)         $ 52,000             Cost of Goods Sold                 $2,100,000 Unearned Service Revenue         $90,000             Notes Receivable                 $40,000 Equipment         $253,000             Accounts Receivable                 $161,000 Inventory (work in process)         $34,000             Inventory (raw materials)                 $207,000 Cash         $37,000             Supplies Expense                 $60,000 Equity Investments (short-term)         $31,000             Allowance for Doubtful Accounts                 $12,000 Customer Advances         $36,000             Licenses                 $18,000 Restricted Cash for Plant Expansion         $50,000             Additional Paid-in Capital                 $88,000 Treasury Stock                 $22,000 The following additional information is available. 1         Inventories are valued at lower-of-cost-or-market using LIFO. 2         Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $50,600. 3         The short-term investments have a fair value of $29,000. (Assume they are trading securities.) 4         The notes receivable are due April 30, 2016, with interest receivable every April 30. The notes bear interest at 6%. (nt: Accrued interest due on December 31, 2014.) 5         The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $50,000 are pledged as collateral on a bank loan. 6         Licenses are recorded net of accumulated amortization of $14,000. 7         Treasury stock is recorded at cost. Prepare the current assets section of Yasunari Kawabata Company’s December 31, 2014, balance sheet, with appropriate disclosures. (List Current Assets in order of liquidity. Enter account name only and do not provide the descriptive information provided in the question.) Question 6 Presented below is the trial balance of Scott Butler Corporation at December 31, 2014. Debit         Credit Cash        $   197,000 Sales                 $ 8,100,000 Debt Investments (trading) (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 Depreciation-Buildings                 $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 Depreciation-Equipment                 $60,000 Franchises        160,000 Common Stock ($5 par)                 $1,000,000 Treasury Stock        191,000 Patents        195,000 Retained Earnings                 $78,000 Paid-in Capital in Excess of Par                 $80,000 Totals        $12,315,000          $12,315,000 Prepare a balance sheet at December 31, 2014, for Scott Butler Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.) Question 7 For each of the following subsequent (post-balance-sheet) events, indicate whether a company should (a) adjust the financial statements, (b) disclose in notes to the financial statements, or (c) neither adjust nor disclose. Sr. No.        Subsequent (Post-Balance-Sheet) Events 1        Settlement of federal tax case at a cost considerably in excess of the amount expected at year-end. 2        Introduction of a new product line. 3        Loss of assembly plant due to fire. 4        Sale of a significant portion of the company’s assets. 5        Retirement of the company president. 6        Prolonged employee strike. 7        Loss of a significant customer. 8        Issuance of a significant number of shares of common stock. 9        Material loss on a year-end receivable because of a customer’s bankruptcy. 10        ring of a new president. 11        Settlement of prior year’s litigation against the company (no loss was accrued). 12        Merger with another company of comparable size. Question 8 Carlton Company is involved in four separate industries. The following information is available for each of the four industries. Operating Segment        Total Revenue        Operating Profit (Loss)            Identifiable Assets W        $60,000         $15,000             $167,000 X        10,000        3,000            83,000 Y        23,000        -2,000            21,000 Z        9,000        1,000            19,000 $102,000         $17,000             $290,000 Determine which of the operating segments are reportable based on the: Reportable Segments (a)        Revenue test.        W & Y (b)        Operating profit (loss) test.        W  X  & Y (c)        Identifiable assets test.        W & X Question 9 As loan analyst for Utrillo Bank, you have been presented the following information. Toulouse Co.            Lautrec Co. Assets Cash        $120,000             $320,000 Receivables        220,000            302,000 Inventories        570,000            518,000 Total current assets        910,000            1,140,000 Other assets        500,000            612,000 Total assets        $1,410,000             $1,752,000 Liabilities and Stockholders’ Equity Current liabilities        $305,000             $350,000 Long-term liabilities        400,000            500,000 Capital stock and retained earnings        705,000            902,000 Total liabilities and stockholders’ equity        $1,410,000             $1,752,000 Annual sales        $930,000             $1,500,000 Rate of gross profit on sales        30    %        40    % GP        $279,000             $600,000 COS        $651,000             $900,000 Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. Because your bank has reached its quota for loans of this type, only one of these requests is to be granted. Compute the various ratios for each company. (Round answer to 2 decimal places, e.g. 2.25.)

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