Question
Use the following list of account balances taken from the ledger of a company on 12/31/22 to answer the questions that follow. (Amounts listed in
Use the following list of account balances taken from the ledger of a company on 12/31/22 to answer the questions that follow.
(Amounts listed in thousands)
Allowance for doubtful accounts | 5 | Prepaid insurance | 8 |
Available-for-sale securities (due 2030) | 90 | Accounts receivable | 100 |
Inventory | 20 | Securities fair value adjustment trading securities (debit balance) | 4 |
Common stock | 10 | Bonds payable (due 2040) | 200 |
Cash and cash equivalents | 55 | Accounts payable | 15 |
Securities fair value adjustment AFS securities (credit balance) | 7 | Accumulated other comprehensive income (credit balance) | 23 |
Discount on bonds payable | 14 | Deferred revenue | 70 |
Additional paid-in capital | 500 | Trading securities | 30 |
Equipment | 750 | Patent | 12 |
Interest payable (due 2023) | 7 | Land | 100 |
Goodwill | 45 | Accumulated depreciation | 50 |
- 5% of the bonds payable and associated discount will come due in 2023. The remaining amount comes due in future years.
- 10% of the cash and cash equivalents are tied to the bonds payable in a sinking fund that is legally restricted until the final maturity of the bonds in 2040.
- The inventory is currently listed at cost, its net realizable value (or market value) is 16 thousand.
- 80% of the deferred revenue will be earned in 2023, the remaining amount will be earned in 2024.
- $6 thousand dollars of the prepaid insurance will be used in 2023. The remaining amount will be used in 2024.
- Provide a formal presentation of the current assets of the company, listed in proper order and at the appropriate amounts. Include a summation of total current assets.
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