Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

  1. 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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems And Internal Control

Authors: Eddy Vaassen, Roger Meuwissen, Caren Schelleman

2nd Edition

0470753951, 9780470753958

More Books

Students also viewed these Accounting questions