5. You are the independent accountant assigned to the audit of Neophyte Company. The company's accountant, a graduate of Rival State University, has prepared financial statements that contained the following questionable items: a) The balance sheet reports land at $100,000. Included in this amount is a property held for speculation (with the hope that it will go up in value) at a cost of $30,000. b) Current liabilities include $50,000 for long-term debt that is due in three months. The company has received a suitable firm commitment to refinance the debt for five years and intends to do so. c) Investments include $20,000 in short-term, high-grade commercial paper, which is a cash equivalent. Describe the appropriate balance sheet presentation for each of the above items and explain. Options include: Current Assets: Cash and Cash Equivalents, Accounts Receivable, Notes Receivable, Inventory, Prepaid Expenses. Long Term Assets: Land, Buildings, Investments, Current Liabilities: Accounts Payable, Salaries Payable, Notes Payable; Long term liabilities: Notes Payable. Shareholder's Equity: Common Stock, Retained Earnings. 5. You are the independent accountant assigned to the audit of Neophyte Company. The company's accountant, a graduate of Rival State University, has prepared financial statements that contained the following questionable items: a) The balance sheet reports land at $100,000. Included in this amount is a property held for speculation (with the hope that it will go up in value) at a cost of $30,000. b) Current liabilities include $50,000 for long-term debt that is due in three months. The company has received a suitable firm commitment to refinance the debt for five years and intends to do so. c) Investments include $20,000 in short-term, high-grade commercial paper, which is a cash equivalent. Describe the appropriate balance sheet presentation for each of the above items and explain. Options include: Current Assets: Cash and Cash Equivalents, Accounts Receivable, Notes Receivable, Inventory, Prepaid Expenses. Long Term Assets: Land, Buildings, Investments, Current Liabilities: Accounts Payable, Salaries Payable, Notes Payable; Long term liabilities: Notes Payable. Shareholder's Equity: Common Stock, Retained Earnings