CHAPTER 2 Financial Statements and Analysis 77LG1 2–2 Financial statement account identification Mark each of the accounts listed in
the following table as follows:
a. In column (1), indicate in which statement—income statement (IS) or balance
sheet (BS)—the account belongs.
Technica, Inc.
Statement of Retained Earnings
for the Year Ended December 31, 2003Retained earnings balance (January 1, 2003) $50,200
Plus: Net profits after taxes (for 2003) 42,900Less: Cash dividends (paid during 2003) ( (^2) (^0) , (^0) (^0) (^0) )
Retained earnings balance (December 31, 2003) $
7
3
,
1
0
0
Technica, Inc.
Balance Sheets
December 31
Assets 2003 2002
Cash $ 15,000 $ 16,000
Marketable securities 7,200 8,000
Accounts receivable 34,100 42,200
Inventories (^8) (^2) , (^0) (^0) (^0) (^5) (^0) , (^0) (^0) (^0)
Total current assets $ (^1) (^3) (^8) , (^3) (^0) (^0) $ (^1) (^1) (^6) , (^2) (^0) (^0)
Land and buildings $150,000 $150,000
Machinery and equipment 200,000 190,000
Furniture and fixtures 54,000 50,000
Other (^1) (^1) , (^0) (^0) (^0) (^1) (^0) , (^0) (^0) (^0)
Total gross fixed assets $415,000 $400,000
Less: Accumulated depreciation (^1) (^4) (^5) , (^0) (^0) (^0) (^1) (^1) (^5) , (^0) (^0) (^0)
Net fixed assets $ (^2) (^7) (^0) , (^0) (^0) (^0) $ (^2) (^8) (^5) , (^0) (^0) (^0)
Total assets $
4
0
8
,
3
0
0
$
4
0
1
,
2
0
0
Liabilities and Stockholders’ Equity
Accounts payable $ 57,000 $ 49,000
Notes payable 13,000 16,000
Accruals (^5) , (^0) (^0) (^0) (^6) , (^0) (^0) (^0)
Total current liabilities $ (^7) (^5) , (^0) (^0) (^0) $ (^7) (^1) , (^0) (^0) (^0)
Long-term debt $ (^1) (^5) (^0) , (^0) (^0) (^0) $ (^1) (^6) (^0) , (^0) (^0) (^0)
Stockholders’ equity
Common stock equity (shares
outstanding: 19,500 in 2003 and
20,000 in 2002) $110,200 $120,000
Retained earnings (^7) (^3) , (^1) (^0) (^0) (^5) (^0) , (^2) (^0) (^0)
Total stockholders’ equity $ (^1) (^8) (^3) , (^3) (^0) (^0) $ (^1) (^7) (^0) , (^2) (^0) (^0)
Total liabilities and stockholders’ equity $
4
0
8
,
3
0
0
$
4
0
1
,
2
0
0