Outkast Outfitters Company includes in its trial balance for December 31 an item for Accounts Receivable $769,000.
Question:
Outkast Outfitters Company includes in its trial balance for December 31 an item for Accounts Receivable $769,000. This balance consists of the following items:
Due from regular customers.....................................................$523,000
Refund receivable on prior year’s income
taxes (an established claim)..............................................................15,500
Travel advance to employees...........................................................22,000
Loan to wholly owned subsidiary...................................................45,500
Advances to creditors for goods ordered...................................61,000
Accounts receivable assigned as security
for loans payable....................................................................................75,000
Notes receivable past due plus interest on
these notes...............................................................................................27,000
Total........................................................................................................$769,000
Illustrate how these items should be shown in the balance sheet as of December 31.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
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Intermediate Accounting principles and analysis
ISBN: 978-0471737933
2nd Edition
Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso
