General Instructions 1. The following worksheet may be used to complete the exercise/problem. You…

General Instructions

1.
The following worksheet may be used to complete the exercise/problem.

You may need to refer to your textbook
for additional information.

2.
The blue cells are for data
entry. Enter text in theTcells,
formulas in theF
cells,

dollars or numbers in the $ cells.

3.
The completed exercise/problem may be printed or e-mailed per direction from
your instructor.

P2-3A

The following
balance sheet items, listed in alphabetical order, are available from the
records of Singer Company

at December 31,
2012:

Accounts payable
$ 34,280

Accounts receivable
26,700

Accumulated
depreciation—buildings
40,000

Accumulated
depreciation—equipment
12,500

Bonds payable, due December
31, 2018
250,000

Buildings
150,000

Capital stock, $1 par value
200,000

Cash
60,790

Equipment
84,500

Income taxes payable
7,500

Interest payable
2,200

Land
250,000

Marketable securities
15,000

Merchandise inventory
112,900

Notes payable, due April 15,
2013
6,500

Office supplies
400

Paid-in capital in excess of
par value
75,000

Patents
45,000

Prepaid rent
3,600

Retained earnings
113,510

Salaries payable
7,400

Required

1. Complete the
following classified balance sheet as of December 31, 2012.

Note: Classify Assets and Liabilities in the order of Liquidity

SINGER COMPANY

BALANCE SHEET

DECEMBER 31, 2012

Assets

Current assets:

Cash

$ 60,790

Marketable securities

15,000

Accounts receivable

26,700

Merchandise inventory

112,900

Prepaid rent

3,600

Office supplies

400

Total current assets

$ 219,390

Property, plant, and
equipment:

Land

$ 250,000

Buildings
$ 150,000

Less: Accumulated depreciation
40,000
110,000

Equipment
$ 84,500

Less: Accumulated depreciation
12,500
72,000

Total property, plant, and
equipment

$ 182,000

Intangible assets:

Patents

45,000

Total assets

$ 696,390

Liabilities

Current liabilities:

Accounts payable

$ 34,280

Salaries payable

7,400

Income taxes payable

7,500

Interest payable

2,200

Notes payable, due April 15,
2013

6,500

Total current liabilities

$ 57,880

Long-term debt:

Bonds payable, due December
31, 2018

250,000

Total liabilities

$ 307,880

Stockholders’ Equity

Contributed capital:

Capital stock, $1 par value

200,000 share outstanding

$ 200,000

Paid-in capital in excess of
par value

75,000

Total contributed capital

$ 275,000

Retained earnings

113,510

Total stockholders’ equity

388,510

Total liabilities and
stockholders’ equity

$ 696,390

2. Compute Singer’s
current ratio.

(Round answers to 2 decimal
places)

Current Ratio
$ 219,390
=
3.79

$ 57,880

3.
On the basis of your answer to (2), does Singer appear to be liquid?

What
other information do you need to fully answer that question?

T

 

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