Duster Company reported the following financial information at the end of 2007:
in millions Unearned revenue $240
Common stock at par 30
Capital in excess of par 440
Accounts payable 1,150
Treasury stock 2,000
Retained earnings 5,160
Accrued expenses 830
Accumulated other comprehensive loss 210 Long-term debt 1,570
Calculate Duster’s liabilities and stockholders’ equity as of December 31, 2007.
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Liabilities |
Stockholders' equity |
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Liabilities are equal to $3,790 million ($240 million unearned revenue + $1,570 long-term debt + $1,150 accounts payable + $830 accrued expenses). Stockholders’ equity is equal to $3,420 million ($30 common stock at par + $440 capital in excess of par – $2,000 treasury stock + $5,160 retained earnings – $210 accumulated other comprehensive loss).
Are the following essential characteristics of an asset?
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Characteristic #1: |
The asset provides future economic benefits as a result of past transactions. |
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Characteristic #2: |
The asset is tangible and is obtained at a cost.
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Characteristic #1 |
Characteristic #2 |
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An asset provides future economic benefits as a result of past transactions. Assets can be tangible or intangible. In some cases, assets are acquired without cost, but will be reported to the extent that they will provide future economic benefit, and thus have value.
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