Reference no: EM132923292

Question - Neptune Corporation is preparing its December 31, 2018, balance sheet. The following items may be reported as either assets, liabilities or stockholders' equity.

a) Neptune invested $75,000 in an available for sale securities, fair value of which is $95,000

b) On October 1, 2018, the company borrowed $900,000 for 5 years at 8% per year. Interest is to be paid half-yearly on April 1 of every year.

c) On December 15, 2018, the company declared a $1.50 per share dividend on the 60,000 shares of common stock outstanding, to be paid on January 25, 2019.

d) During the year, customer advances of $220,000 were received; $110,000 of this amount was earned by December 31, 2018.

e) A 10% bonds payable of 1,000,000 was issued on December 31, 2018, due on December 31, 2023.

f) Treasury stock of $55,000 has been recorded at cost.

g) Notes payable of $440,000 is due on 31st January, 2020.

h) Neptune restricted 50% of its' total cash of $330,000 to repay a loan after 2 years.

i) Neptune has a claim of $60,000 to be received after 2 months against an insurance company for a causality loss.

j) Neptune owns an equipment of $35,000 which is currently unused.

Required - For each item above indicate the dollar amounts to be reported as assets, liabilities or stockholders' equity.