Question:
Parker Inc. has the following cash balances:
First Bank: $150,000
Second Bank: (10,000)
Third Bank: 25,000
Fourth Bank: (5,000)
Required:
1. Prepare the current assets and current liabilities section of Parker’s 2013 balance sheet, assuming
Parker reports under U.S. GAAP.
2. Prepare the current assets and current liabilities section of Parker’s 2013 balance sheet, assuming
Parker reports under IFRS.
Answer:
Requirement 1: U.S. GAAP
Current Assets:
Cash $175,000
Current Liabilities:
Bank overdrafts $ 15,000
Requirement 2: IFRS
Parker Inc. has the following cash balances:
First Bank: $150,000
Second Bank: (10,000)
Third Bank: 25,000
Fourth Bank: (5,000)
Required:
1. Prepare the current assets and current liabilities section of Parker’s 2013 balance sheet, assuming
Parker reports under U.S. GAAP.
2. Prepare the current assets and current liabilities section of Parker’s 2013 balance sheet, assuming
Parker reports under IFRS.
Answer:
Requirement 1: U.S. GAAP
Current Assets:
Cash $175,000
Current Liabilities:
Bank overdrafts $ 15,000
Requirement 2: IFRS
