Consider the following questions::
Q. 1: The following are the major balance sheet classifications.
Current assets (CA)
Current liabilities (CL)
Long-term investments (LTI)
Long-term liabilities (LIT)
Property, plant, and equipment (PPE)
Stockholders' equity (SE)
Intangible assets (IA)
Instructions
Classify each of the following financial statement items taken from Ming Corporation's balance sheet.
Accounts payable
Accounts receivable Accumulated depreciation-equipment
Buildings
Cash
Interest payable
Goodwill
Income taxes payable
Inventory
Stock investments (to be sold in 7 months)
Land (in use)
Mortgage payable
- Supplies
- Equipment
- Prepaid rent
Q. 2: A You are provided with the following information for Lazuris Enterprises, effective Prepare financial statements. as of its April 30. 2017. year-end.
|
Accounts payable
|
$ 834
|
|
Accounts receivable
|
810
|
|
Accumulated depreciation-equipment
|
670
|
|
Cash
|
1,270
|
|
Common stock
|
900
|
|
Cost of goods sold
|
1,060
|
|
Depreciation expense
|
335
|
|
Dividends
|
325
|
|
Equipment
|
2,420
|
|
Income tax expense
|
165
|
|
Income taxes payable
|
135
|
|
Insurance expense
|
210
|
|
Interest expense
|
400
|
|
Inventory
|
967
|
|
Land
|
3,100
|
|
Mortgage payable
|
3,500
|
|
Notes payable
|
61
|
|
Prepaid insurance
|
60
|
|
Retained earnings (beginning)
|
1,600
|
|
Salaries and wages expense
|
700
|
|
Salaries and wages payable
|
222
|
|
Sales revenue
|
5,100
|
|
Stock investments (short-term)
|
1,200
|
Instructions:
(a) Prepare an income statement and a retained earnings statement for Lazuris Enter-
(a) Net income S2,230 prises for the year ended April 30, 2017.
(b) Tot. current assets 54,307
(b) Prepare a classified balance sheet for Lazuris Enterprises as of April 30, 2017. Tot. assets 59,157.