Chapter 5: E 5-2, E 5-4, E 5-12, E 5-13, P 5-2
E5-2
1. Preferred stock. H
2. Goodwill. D
3. Salaries and wages payable. F
4. Accounts payable. F
5. Buildings. C
6. Equity investments (trading). A
7. Current portion of long-term debt. F
8. Premium on bonds payable. G
9. Allowance for doubtful accounts. A
10. Accounts receivable. A
11. Cash surrender value of life insurance. B
12. Notes payable (due next year). F
13. Supplies. A
14. Common stock. H
15. Land. C
16. Bond sinking fund. B
17. Inventory. A
18. Prepaid insurance. A
19. Bonds payable. G
20. Income tax payable. F

E5-4
Assets

Current assets Cash Equity investments at fair value Accounts receivable Less: Allowance for doubtful accounts Inventories, at lower of average cost or market Prepaid expenses Total current assets

Long-term investments Land held for future use Cash surrender value of life insurance
Property, plant, and equipment Building Less: Accum. depr.—building Office equipment Less: Accum. depr.—office equipment
Intangible assets Goodwill Total assets

Liabilities and Stockholders’ Equity
Current liabilities Accounts payable Notes payable (due next year) Rent payable Total current liabilities

Long-term liabilities Bonds payable Add: Premium on bonds payable Pension obligation Total liabilities
Stockholders’ equity Common stock, $1 par, authorized 400,000 shares, issued 290,000 shares Additional paid-in capital Retained earnings** Total stockholders’ equity Total liabilities and stockholders’ equity

$357,000

17,000