Question
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6) QUESTIONS: The following is a December 31, 2016, post-closing trial balance for Excell Company: Account Title
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6) QUESTIONS: The following is a December 31, 2016, post-closing trial balance for Excell Company:
Account Title | Debits | Credits |
Cash | $ 83,000 | |
Accounts Receivable (net of Allowance) | $280,000 | |
Prepaid Expenses | $ 32,000 | |
Investments | $ 65,000 | |
Land | $175,000 | |
Buildings (net) | $160,000 | |
Equipment (net) | $145,000 | |
Accounts payable | $ 73,000 | |
Accrued expenses | $ 45,000 | |
Unearned Revenue | $150,000 | |
Notes payable | $300,000 | |
Common Stock | $200,000 | |
Retained Earnings | $172,000 | |
TOTALS | $940,000 | $940,000 |
Additional Information: 1. The cash account includes $15,000 set aside in a legally restricted fund to pay bonds payable that mature in 2019 and $13,000 cash surrender value of a life insurance policy on the company's CEO. 2. The accounts receivable balance consists of the following: a. Amounts owed by customers with debit balances $ 235,000 b. Customer accounts with credit balances 10,000 c. Allowance for uncollectible accounts - trade customers (15,000) d. Non-trade note receivable due in three years 65,000 e. Interest receivable on note due in four months 5,000 Total $ 280,000
3. The prepaid expenses includes $21,000 that will be consumed during 2017 and $11,000 that will be consumed during 2018.
4. The land account includes land which cost $75,000 that the company purchased for speculative purposes and is currently held for sale. The remaining $100,000 is the cost of land on which the company's office building resides. The equipment account includes idle machinery with a book value of $45,000. 5. The investments account is classified as Available for Sale Securities and includes an investment of $25,000 in bonds that mature July 1, 2017. Of the remaining investments balance, management intends to hold for at least the next three years. All investments in the portfolio have already been marked-to-market and are reported at Fair Value. 6. The unearned revenue represents customer prepayments for magazine subscriptions. Subscriptions are for three years and will be earned evenly over each of the years beginning January 1, 2017. 7. The notes payable account consists of the following: a. a $50,000 note due in six months. b. a $100,000 note due in six years. c. a $150,000 note due in three annual installments of $50,000 each, with the next installment due Nov. 1, 2017. *Interest on all notes has been properly accrued and is included in accrued expenses.
After all corrections have been made, determine the correct amount of Current Assets:
Using the information in #1 above, determine Total Long-Term Investments (after all corrections and adjustments have been made):
Using the information from #1 above, determine Total PP&E (net) after all adjustments and corrections have been made:
Using the information in #1 above, determine the Total Other Assets after all corrections have been made:
Using the information presented in #1 above, determine Total Current Liabilities after all corrections have been made:
Using the information in #1 above, determine Total Long-Term Liabilities after all corrections have been made:
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