E 3.02 – Typical classifications in the balance sheet
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
For each of the following balance sheet items use the letters to indicate the classification category.
For each of the following balance sheet items use the letters to indicate the classification category.
Create a classified balance sheet for Jackson Corporation at December 31, by properly classifying each of the accounts.
Your numbers will vary.
They give you a long list of accounts. Find the company’s current assets, current liabilities, and working capital.
Your numbers will vary.
Prepare asset and liability sections of the classified balance sheet. Show how each should be reported.
Your numbers will vary.
Calculate the current ratio, the acid-test ratio, the debt to equity ratio, and the times interest earned ratio.
Your numbers will vary.
They ask you to find the effect on 3 ratios (current, acid-test, debt to equity) of 11 items such as issuing bonds, a note, pay accts payable, etc.
Calculate the overall overstatement or understatement of net income.
Your numbers will vary.
Calculate the amounts that have been left blank for each situation.
Your numbers will vary.
Given the situations the company faced… determine the required journal entry along with the equipment’s book value.
Your numbers will vary.
Given the information on the trial balance, determine the adjusted and unadjusted trial balance for the prepaid rent and rent expense.
Your numbers will vary.