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 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 the above items.

Your answer should be 100+ words and is due no later than Wednesday, 11:59pm.

Your reply to at least one of your classmates is due no later than Sunday, 11:59pm.

Guiding Hints/Questions:

- Review Balance Sheet Classification for Current Assets,Investments,PPE,Current and Long Term Liabilities.

- How are liabilities reported when management intends (and have the ability) to refinance the debt before the financial statement issuing date?