12\

3,4,5

\ 3\ Insegrevious, Inc., is engaged in the business of manufacturing widgets. Insegrevious is unsure of how to classify certain transactions on its balance sheet. For the following transactions, determine the amount that needs to be included in the balance sheet for the period ending December 31, Year 4, as either current or noncurrent.\ Insegrevious paid

$50,000

for rent on April 1, Year 1. Rent is

$700

per month, due on the last day of the month.\ Insegrevious purchased new equipment for

$10,000

on January 1 , Year 2 . The equipment has a useful life of 10 years and has no salvage value. Insegrevious depreciates its equipment using the straight-line method.\ Insegrevious took out a 10-year loan for

$40,000

on July 1 , Year 3. Insegrevious must pay a total of

$12,000

in interest over the life of the loan in equal monthly installments due at the end of each month. The entire balance of the loan is due June 30 , Year 13 . On July 1, Year 4, Insegrevious prepaid

$2,000

of interest.\ In Year 3, Insegrevious made the following investments:\

$4,000

in available-for-sale securities, all of which will be sold in Year 5\

$2,000

in held-to-maturity securities\ Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero ( 0 ) or leave the cell blank.\ \\\\table[[Transaction,Current,Noncurrent],[1. Prepaid rent,123,123]]

Insegrevious, Inc., is engaged in the business of manufacturing widgets. Insegrevious is unsure of how to classify certain transactions on its balance sheet. For the following transactions, determine the amount that needs to be included in the balance sheet for the period ending December 31, Year 4, as either current or noncurrent. - Insegrevious paid $50,000 for rent on April 1, Year 1. Rent is $700 per month, due on the last day of the month. - Insegrevious purchased new equipment for $10,000 on January 1, Year 2 . The equipment has a useful life of 10 years and has no salvage value. Insegrevious depreciates its equipment using the straight-line method. - Insegrevious took out a 10 -year loan for $40,000 on July 1 , Year 3. Insegrevious must pay a total of $12,000 in interest over the life of the loan in equal monthly installments due at the end of each month. The entire balance of the loan is due June 30 , Year 13 . On July 1 , Year 4 , Insegrevious prepaid $2,000 of interest. - In Year 3, Insegrevious made the following investments: 1. $4,000 in available-for-sale securities, all of which will be sold in Year 5 2. $2,000 in held-to-maturity securities Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (0) or leave the cell blank