Chapter 18 Homework Problems 1. Match the following financial statements with the items below.A. Income Statement B. Balance Sheet _____ 1. Common Stock _____ 2. Treasury Stock _____ 3. Extraordinary Loss _____ 4. Cost of Goods Sold _____ 5. Bonds Payable _____ 6. Goodwill _____ 7. Accumulated Depreciation _____ 8. Premium on Bonds Payable _____ 9. Interest Expense _____10. Preferred Stock Answers: 1. B 2. B 3. A 4. A 5. B 6. B 7. B 8. B 9. A 10. B 2. Match the following balance sheet classifications with the accounts listed below. A. Current AssetsB. InvestmentsC. Property Plant and EquipmentD. Intangible AssetsE. Current LiabilitiesF. Long-Term LiabilitiesG. Contributed CapitalH. Retained EarningsI. Accumulated Other Comprehensive Income_____ 1. Accounts Payable_____ 2. Available for Sale Securities_____ 3. Preferred Stock_____ 4. Premium on Bonds Payable_____ 5. Prepaid Rent_____ 6. Patent_____ 7. Equipment_____ 8. Unrealized Gains on Investments_____ 9. Note Payable (due in 3 years)_____10. Paid-in-Capital from Treasury StockAnswers: 1. E 2. B 3. G 4. F 5. A 6. D 7. C 8. I 9. F 10. GUse the following information for questions 3-6:Cash $ 50,000 Inventory $ 9,000Sales $ 30,000 Accounts Payable $ 9,000Cost of Goods Sold $ 8,000 Accounts Receivable $18,000Prepaid Insurance $ 8,000 Insurance Expense $ 9,000Equipment $35,000 Long-Term Liabilities (due within one year) $30,000 3. What is the value of current assets? $ 85,0004. What is the value of long-term assets? $35,0005. What is the value of current liabilities? B) $ 39,000 6. What is the value of long-term liabilities? $07. A company has 30,000 shares authorized and 13,000 shares issued (common stock). The par value equals $ 1.00 per share and the selling average price per share was $5. What value will be placed in the account "paid-in capital in excess of par?" $52,0008. B Company sold its common stock for $100,000 cash. How would the balance sheet change as a result? 9. C Company accrued salaries expense of $12,000 for the week. How would this affect the financial statements? 10. D Company borrows $10,000 from their bank, which is to be repaid in 2 years. How would thebalance sheet change as a result? 11. Each of the following would be shown in which financial statement?Accounts ReceivableAccounts PayableAccumulated Depreciation—BuildingsAdministrative ExpensesAllowance for Uncollectible AccountsAvailable-for-Sale SecuritiesBonds PayableBuildingsCashCommon StockCost of Goods SoldDiscount on Bonds PayableGain on Sale of EquipmentIncome Tax ExpenseInterest IncomePaid-In Capital in Excess of ParPrepaid RentPrepaid SalariesRetained EarningsSalesSalaries ExpenseSalaries PayableSelling ExpensesTreasury StockUnrealized Gain on Available-for-Sale Securities Unearned