Preparing a Current Asset Section along with Note Disclosures The following selected balances are from the post-closing trial balance of WKO Inc. as of December 31, 2020, Cash $120.000 Equipment 5128,000 Investments 156,800 Accumulated deprecation 24000 Accounts receivable 120,000 Franchise MOOD Inventory "128.000 Customer deposits received in advance 6,400 Not receivable 160,000 Accounts payable 104.000 Additional information 1. Included in the cash balance is $40,000 of cash restricted for 18 months due to a debt agreement 2. Included in investments is $44.800 of short-term investments at fair value and the remaining is long-term also recognized at fair value. 3.4% of the accounts receivable balance of $120.000 is estimated to be uncollectible. 4 Inventory is valued at the lower of cost or market. The cost value is determined using the average cost method. 5. The note receivable of $160,000 is due in 21 months. The interest rate is 5% and the note originated on September 30, 2020. Interest is paid Quarterly with the first payment due January 1, 2021 a. Prepare the current asset section of the classified balance sheet for WK inc. on December 31, 2020 Note: Do not use negative signs in your answers. Current Ass Section December 31, 2020 Cash Short-term investments Accounts receivable Les Alowance for doubl accounts Inventory Total current b. Prepare a list of four notes, regarding all assets, to be included in the significant accounting policy role accompanying the financial statements of WXO Inc. on December 31, 2020. Note: Select your answers in alphabetical order using the first word provided in the note Previous 12 Save Anwers Cash Correcting the Presentation of a Classified Balance Sheet The following draft of a balance sheet was prepared for Roslyn Corp, but includes a number of errors in classification, presentation, and computation. Roslyn Corp Balance Sheet December 31, 2020 $60,000 Building 282,500 Equipment 55.000 Accounts receivable 120 50 Investments, short term 70,000 Inventory 162.500 Prepaid rent 2.500 Investments, long term 70,000 Franchise 20.000 Totalasses 5841000 Liabies Accounts payable $100,000 payable VO Dividends payable 5000 Deferred revenue 1,500 Accumulated depreciation 40.000 Bonds payable 100.000 Total 335,000 Stockholders' equity Common stock 237.500 Retained earnings 277,500 Accumulated other comprehensive income 07.000 Total stod holders' equity SO DOO Tallibilities and stockholders equity $143.000 Additional information Note payable includes interest due of $1,000. The note is due in two years and interest is due in 6 months. Net accounts receivable of $120,500 consists of accounts receivable of $128,500 minus an allowance for doubtful accounts of $8,000 . Common stock includes $87,500 attributed to additional paid-in capital o included in the cash balance is $10,000 of cash restricted for 9 months due to a debt covenant
