ACC201 Module 3
Balance Sheet
Assignment Overview
The main purpose of this Module is to review the balance sheet in more detail.
Is there a difference in approach to valuation by US GAAP and IFRS? Discuss and note two or three specific differences. Additionally, clearly
- Distinguish between an expense (expired cost) and an asset.
- Distinguish between current and long-term assets.
- Distinguish between current and long-term liabilities.
- Review Apple’s balance sheet and provide two examples of each of the above categories.
- Discuss retained earnings and how income or loss and dividends affect this account. Review Apple’s retained earnings account and explain how it changes between the two past years.
- Comment on at least three differences between Apple’s and Samsung’s balance sheets.
- Does Apple or Samsung have more debt?
- Which of the two companies is the bigger one? Explain your reasoning.
Assignment Expectations
The submission should be 3- to 5-pages and need to include answers to all the questions listed above. Show computations, discuss the results, and include references in APA format.
When your paper is done, submit it.
Balance Sheet
We're continuing to analyze the same company as in Modules 1 and 2.
Additional information added in Module 2
- One client indicated that they were interested in purchasing $42,500 worth of products. However, the client has not actually committed to the purchase.
- The bookkeeper already corrected the sales account. However, the bookkeeper may have made a mistake when computing cost of goods sold. She included total production costs for 2014 and did not adjust ending inventory for the $42,500 worth of units left at the end of the year. The amount of ending inventory was determined using a physical count.
Additional information for Module 3
- The company made a secondary offering of stock and raised an additional $180,000 which includes $150,000 of Paid-in Capital.
- The company had already paid $15,000 in dividends before deciding on the offering.
- The company now has cash to invest in a piece of raw land on which to build in the future. The investment takes place before year end. The cost of the land is $400,000, the down payment is $40,000 and a note to the bank covers the rest.
Nybrostrand Company | ||
31-Dec-14 | ||
Trial Balance (accounts in alphabetical order) | ||
Debit | Credit | |
Accounts payable | $ 78,000 | |
Accounts receivable | $ 36,500 | |
Cash | 30,000 | |
Common stock | 10,000 | |
Depreciation expense | 24,350 | |
Cost of goods sold | 307,000 | |
Equipment (net of depreciation) | 415,000 | |
Insurance | 1,400 | |
Inventory | 34,000 | |
Long-term debt | 127,000 | |
Marketing | 4,500 | |
Paid-in capital | 50,000 | |
Property taxes | 16,900 | |
Rent | 28,000 | |
Retained earnings | ? | |
Revenues | 586,000 | |
Salaries | 78,500 | |
Utilities | 6,700 | |
Total | 982,850 | 982,850 |
SLP Assignment Expectations
Prepare a balance sheet for the company in good format. Update the balance sheet for the changes to income in Module 2 and also consider the effect of paying the dividend. You do not need to include the income statement.
The submission should be 2- to 4-pages and need to include answers to all the questions listed above. Show computations, discuss the results, and include references in APA format.
When your paper is done, submit it.
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Solution: ACC201 Module 3