1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xxMikexx [17]
3 years ago
14

Presented below is the balance sheet for HHD, Inc., at December 31, 2016. Current assets $ 676,000 Current liabilities $ 476,000

Investments 557,000 Long-term liabilities 587,000 Property, plant, and equipment 2,532,000 Shareholders' equity 2,940,000 Intangible assets 238,000 Total assets $ 4,003,000 Total liabilities and shareholders' equity $ 4,003,000 The captions shown in the summarized statement above include the following:a. Current assets: cash, $169,000; accounts receivable, $219,000; inventories, $244,000; and prepaid insurance, $44,000.b. Investments: investments in common stock, short term, $109,000, and long term, $179,000; and restricted cash, long term, $269,000.c. Property, plant, and equipment: buildings, $1,690,000 less accumulated depreciation, $619,000; equipment, $690,000 less accumulated depreciation, $219,000; and land, $990,000.d. Intangible assets: patent, $129,000; and copyright, $109,000.e. Current liabilities: accounts payable, $119,000; notes payable, short term, $169,000, and long term, $109,000; and taxes payable, $79,000.f. Long-term liabilities: bonds payable due 2021.g. Shareholders’ equity: common stock, $1,950,000; retained earnings, $990,000. Five hundred thousand shares of no par common stock are authorized, of which 390,000 shares were issued and are outstanding.Required:Prepare a corrected classified balance sheet for HHD, Inc., at December 31, 2016. (Amounts to be deducted should be indicated by a minus sign.)
Business
1 answer:
Gemiola [76]3 years ago
7 0

Answer:

2016 Balance Sheet

$169,000 Cash

$109,000 Investment in Common Stock

$219,000 Accounts Receivable

$244,000 Inventory

$44,000  Prepaid Insurances

$785,000  TOTAL CURRENT ASSETS  

$990,000 Land

$690,000 Machinery and Equipment

-$219,000 Accum Depreciation

$1,690,000 Buildings

-$619,000 Accum Depreciation

$129,000 Patents

$269,000 Restricted Cash

$109,000 Copyright

$179,000 Investment in Common Stock

$3,218,000  TOTAL NONCURRENT ASSETS  

$4,003,000  TOTAL ASSETS  

$119,000   Accounts Payable  

$79,000   Taxes Payable  

$169,000  Notes  Payable  

$367,000  TOTAL CURRENT LIABILITIES  

$587,000  Bonds Payable 2021  

$109,000  Notes Payable  

$696,000  TOTAL NONCURRENT LIABILITIES  

$1,063,000  TOTAL LIABILITIES  

$1,950,000  Common Stock  

$990,000  Retained Earnings  

$2,940,000  TOTAL EQUITY  

$4,003,000  TOTAL EQUITY + LIABILITIES  

Explanation:

  • Account of Current Assets , the criteria is to have a liquidity speed less than one year

Cash

Investment in Common Stock

Accounts Receivable

Inventory

Prepaid Insurances

  • Account of Non Current Assets , the criteria is to have a liquidity speed more than one year and are known as fixed assets

Land

Machinery and Equipment

Accum Depreciation

Buildings

Accum Depreciation

Patents

Restricted Cash

Copyright

Investment in Common Stock

  • Account of Current Liabilities , the criteria is to have a liquidity speed less of one year

Accounts Payable  

Taxes Payable  

Notes  Payable  

  • Account of Non Current Liabilities, the criteria is to have a liquidity speed more than one year and are known as long term financing

Bonds Payable 2021  

Notes Payable  

  • Account of Total Equity

Common Stock  

Retained Earnings  

Liquidity is defined as the speed of the assets that will be converted into cash, Assets that take less days to buy or sell are more liquid than others.

Cash is the most liquid asset, then Accounts Receivable and Inventories for the end, in the middle there are different assets such as capital investments.

Prepaid expenses are not liquid because these accounts do not mean that the company can get cash unless the company has rights to something.

You might be interested in
Interdepartment Services: Step Method
Stells [14]

Answer:

O'Brian's Department Stores

a) Determination of the percentage of total personnel department services that was provided to the Payroll department

Since allocation of the personnel department services is based on the number of employees, we can use this to calculate the percentage.  The personnel employees are not included in this calculation.

= 4/32 x 100 = 12.5%

b) Percentage of total payroll department services provided to the personnel department.  Since the basis is the gross payroll, we can use this to calculate the percentage.  The gross payroll of the Payroll department is not included in the calculation.

= $6,000/$42,100 x 100 = 14.3%

c)                          Personnel  Payroll  House-     Clothing   Furniture    Total

                                                         Ware

Direct department

  cost               $ 7,800  $ 3,200    $ 12,200   $ 20,000  $ 16,750  $59,950

Number of

  employees       5              4                8               16             4             37

Gross payroll $ 6,000  $ 3,300    $ 10,600     $ 17,400    $ 8,100   $45,400

Total cost      $13,800   $6,500    $22,800     $37,400  $24,850  $105,350

Allocation of service departments costs, using the step method:

Personnel      -13,800      1,725          3,450         6,900       1,725       13,800

Payroll              0           -8,225           2,415         3,965        1,845       8,225

Total allocated 0               0          $28,665    $48,265   $28,420 $105,350

Explanation:

a) Data:

                        Personnel  Payroll  House-     Clothing   Furniture    Total

                                                         Ware

Direct department

  cost               $ 7,800  $ 3,200    $ 12,200   $ 20,000  $ 16,750  $59,950

Number of

  employees       5              4                8               16             4             37

Gross payroll $ 6,000  $ 3,300    $ 10,600     $ 17,400    $ 8,100   $45,400

b) Cost allocation & Calculations:

Personnel (based on the number of employees)

Rate = $13,800/32 = $431.25 per employee

Payroll (based on gross payroll)

Rate = Payroll cost = Payroll cost divided by the total gross payroll in the other departments, excluding personnel and payroll departments

= $8,225/$36,100 = $0.2278 per gross payroll

c) Allocation of service departments' costs is a method of apportioning costs incurred by service departments to the production departments in order to include all the costs in the product costs.  Three methods exist for allocating service departments' costs to the production departments.  The first, which is the simplest, is the direct method.  With this method, the costs of service departments are allocated directly to each production department based on the consumption of the service department's services.  They are not allocated to other service departments.

The second method is the step method.  Here, the costs of one service department with the highest cost are allocated to all other departments first, including production and other service departments following a step.  The costs of the next service department with the highest costs are allocated to the remaining departments.  This step is continued until all the service departments' costs have been allocated.  Once the costs of a service department have been completely allocated, that department would not be allocated any other cost.

The Reciprocal method, which is the last method, is the most accurate and complicated method.  This method first establishes the relationship among the service departments in equation form and uses the established equations to allocate the costs of service departments.  We may not discuss it further than this.

3 0
4 years ago
Hall Co.’s allowance for credit losses had a credit balance of $24,000 at December 31, Year 1. During Year 2, Hall wrote off unc
Vaselesa [24]

Answer:

$100,000

Explanation:

Allowance as at December 31, Year  2        $100,000

This will be recorded as it is expense for the year 2

Bad Debt Expense   Dr.$100,000

Account Receivable Cr.$100,000

5 0
3 years ago
Read 2 more answers
As a student in what way you can solve the problem of scarcity
Rudiy27

Answer:

Explanation:

Increase production i.e; facilitate the production to the maximum of the capacity in the short run. Ensure longer term innovation and investment to reduce risk for future. Keep educating the children to take care of future needs.

5 0
3 years ago
True or false? mama's pies wants to add another store to sell its pastries. it costs $400,000 to build the new store and the new
DerKrebs [107]
I feel like this is a trick question because it would not be that simple of a decision but if those were the only two things to consider then I guess it would be true. But in real life you would have to worry about employment costs, advertisement of the new store, who will manage each store when you are at the other store, etc. There would be so many more things going into that decision than just 450,000-400,000=50,000. But I would go with true.

Hope that helps.
4 0
4 years ago
Sofia worries that if something happens to her husband and he dies, she will lose everything—their home, their cars, etc. Which
pochemuha

Answer:

D. life insurance company

Explanation:

Life insurance protects against loss of income as a result of the death of the insured. It is an agreement where the insurance company accepts to pay the beneficiaries the stated sum of money when the insured dies.

Sofia should consult a life insurance company and find out the available plans that can provide relief should her husband die. Usually, insurance companies have policy plans that provide coverage against different types of risks. They also offer medical and life insurance.

8 0
3 years ago
Other questions:
  • Alicia wants to become an HR specialist. She is interested in the rewards function of the HR department. Therefore, she decides
    14·1 answer
  • The American Council for an Energy Efficient Economy works to _______.
    15·2 answers
  • Decision variables:
    11·1 answer
  • Hamilton company uses a periodic inventory system, at the end of the annuanl accounting period, December 31,2015, the accounting
    14·1 answer
  • The grocery industry has an annual inventory turnover of about 16 times. Organic​ Grocers, Inc., had a cost of goods sold last y
    14·1 answer
  • After examining the records of Theta Company for the month of October, the following information is obtained: Beginning cash bal
    6·1 answer
  • Jacques lives in Miami and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of
    5·1 answer
  • Which paraphrases correctly matches a specific type of loan with the broader category it best fits?
    9·2 answers
  • While rules are made to be followed, it is inevitable that some will be broken or not followed at all. In working information en
    10·1 answer
  • your enterprise experienced several technical issues over the last few days. there were multiple instances of passwords needing
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!