Prepare the current asset section of a classified balance sheet given the following normal account balances on December $31.$

Note: Combine cash and cash equivalents into one line item.

Note: If a line is not required for an account, enter N$/$A for the account and enter a zero for the amount.

Review the following separate items and determine the proper classification as of December $31,$ as a current or noncurrent asset, or some combination.

a$.$ $$90,000,$ long$-$term note receivable, with an installment payment of $$9,000$ due June $30$ of the next year.

Current asset Answer $1$

$0$

Noncurrent asset Answer $2$

$0$

b$.$ $$9,000$ investment in equity securities where the company $($owner of the investment$)$ intends to sell the securities sometime in the next year.

Current asset Answer $3$

$0$

Noncurrent asset Answer $4$

$0$

c$.$ $$72,000$ investment in land that is held for speculative purposes.

Current asset Answer $5$

$0$

Noncurrent asset Answer $6$

$0$

d$.$ $$25,200$ in accounts receivable, with an associated allowance for doubtful accounts of $$1,800.$

Current asset Answer $7$

$0$

Noncurrent asset Answer $8$

$0$Review the following separate items and determine the proper classification as of December $31,$ as a current or noncurrent asset, or some combination.

a$.$ $$90,000,$ long$-$term note receivable, with an installment payment of $$9,000$ due June $30$ of the next year.

Current asset Answer $1$

$0$

Noncurrent asset Answer $2$

$0$

b$.$ $$9,000$ investment in equity securities where the company $($owner of the investment$)$ intends to sell the securities sometime in the next year.

Current asset Answer $3$

$0$

Noncurrent asset Answer $4$

$0$

c$.$ $$72,000$ investment in land that is held for speculative purposes.

Current asset Answer $5$

$0$

Noncurrent asset Answer $6$

$0$

d$.$ $$25,200$ in accounts receivable, with an associated allowance for doubtful accounts of $$1,800.$

Current asset Answer $7$

$0$

Noncurrent asset Answer $8$

$0$

On December $31,$ Year $4,$ Alexa Company is preparing adjusting entries for its annual year$-$end. The following issues confront the company.

$1.$ Equipment #$101$ with a cost of $$6,160$ was purchased three years earlier on January $1,$ Year $2.$ It is being depreciated on a straight$-$line basis over an estimated useful life of $10$ years with no residual value. At December $31,$ Year $4,$ it has been determined that the estimated total useful life is $6$ years instead of $10.$

Epsom Company purchased a machine that cost $$100,000$ on January $1,$ eight years ago. The estimated useful life was $12$ years, and the estimated residual value was $$0.$ Straight$-$line depreciation is used. At the start of the current year, before making any adjusting entry to record depreciation expense for that year, the company decided that the machine should be depreciated over a $15-$year total useful life.

a$.$ Prepare the adjusting entry at December $31$ of the current year for annual depreciation expense.

Round the answers to the nearest dollar.

Account Name Dr$.$ Cr$.$