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WCV Company

Price: $3.99


The following is the adjusted trial balance of the WCV Company as of December 31, 2013:

WCV Company
Adjusted Trial Balance
December 31, 2013

Debits Credits
Cash $24,800
Accounts Receivables 98,900
Allowance for Doubtful Accounts $5,300
Prepaid Insurance 3,600
Inventory 186,600
Long-term Investments 205,100
Land 51,400
Construction Work in Process 75,000
Patents 21,600
Equipment 242,000
Accumulated Depreciation – Equipment 84,700
Unamortized Discount on Bonds Payable 12,000
Accounts Payable 89,500
Accrued Expenses 29,800
Notes Payable 56,900
Bonds Payable 242,000
Common Stock 302,500
Premium on Common Stock 27,200
Retained Earnings 83,100
$921,000 $921,000

Additional information:

1. The company purchased the patents for $24,000 and amortizes the cost using the straight-line method of amortization.

2. In 2014, $1,200 of the unamortized discount on bonds payable will be amortized.

3. The long-term investments consist of both stocks and bonds. The costs of the investments equal the fair market value of the investments.

4. The company has an outstanding bank loan recorded as a notes payable. The loan is due in 2014 and is secured by long-term investments in the amount of $73,000.

5. The bonds payable pay 8% interest each December 31. They are due on January 1, 2024.

6. The Construction Work in Process represents a new factory building under construction.

7. The Land represents the land on which the new factory is being constructed.

8. The company uses the FIFO method of inventory valuation.

9. The company has authorized 363,000 shares of common stock with a $1 par value. During 2013, there were 302,500 shares issued and outstanding.

10. The company ends its accounting year on December 31.

Instructions:

Prepare a balance sheet in good form as of December 31, 2013 which fully discloses all important information.

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