Acc220 Intermediate Accounting: Week 3 Assignment (E2-3, E2-4 and E2-5)

Acc220 Intermediate Accounting
Week 3 Assignment (E2-3, E2-4 and E2-5)

E2-3
These items are taken from the financial statements of Megan Co. at December 31, 2004.
Building 105,800
Accounts receivable 12,600
Prepaid insurance 4,680
Cash 20,840
Equipment 82,400
Land 61,200
Insurance expense 780
Depreciation expense 6,300
Interest expense 2,600
Common stock 66,000
Retained earnings (January 1, 2004) 40,000
Accumulated depreciation—building 45,600
Accounts payable 11,500
Mortgage payable 93,600
Accumulated depreciation—equipment 18,720
Interest payable 3,600
Bowling revenues 18,180

Instructions:
Prepare a classified balance sheet; assume that $13,600 of the mortgage payable will be paid in 2005.

E2-4
The following items were taken from the 2001 financial statements of Texas Instruments, Inc. (All dollars are in millions.)
Long-term debt 1,211 Cash 431
Common stock 2,904 Accumulated depreciation 4,094
Prepaid expenses 328 Accounts payable 1,205
Property, plant, and equipment 9,683 Other noncurrent assets 1,794
Other current assets 554 Other noncurrent liabilities 1,109
Other current liabilities 337 Retained earnings 8,975
Long-term investments 2,621 Accounts receivable 1,198
Short-term investments 2,513 Inventories 751
Loans payable in 2002 38

Instructions
Prepare a classified balance sheet in good form as of December 31, 2001.

E2-5
These financial statement items are for Conner Corporation at year-end, July 31, 2004.
Salaries payable 1,960
Salaries expense 54,700
Utilities expense 22,600
Equipment 15,900
Accounts payable 4,220
Commission revenue 61,100
Rent revenue 8,500
Long-term note payable 1,800
Common stock 16,000
Cash 24,200
Accounts receivable 8,780
Accumulated depreciation 5,400
Dividends 4,000
Depreciation expense 4,000
Retained earnings (beginning of the year) 35,200

Instructions:
(a) Prepare an income statement and a retained earnings statement for the year. Conner Corporation did not issue any new stock during the year.
(b) Prepare a classified balance sheet at July 31.
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