confused of investments Exercises 4, 6,12,15, 17, & 19; Problems 4 &... Help The
ID: 2334135 • Letter: C
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confused of investments
Exercises 4, 6,12,15, 17, & 19; Problems 4 &... Help The following is the ending balances of accounts at December 31, 2018 for the Vosburgh Electronics Corporation. Debits Credite Account Title Cash Short-term investments Accounts receivable Long-term investnents Inventories Loans to erployees Prepaid expenses (for 2019) Land Building Machinery and equipment Patent Franchise Note receivable Interest recelvable Accumulated depreciation-bailding Accunulated depreelation-equipnent Accounts payable Dividends payable [payable on 1/16/19) Intereat payable Taxes payable Deferred revenue Notes payable Allovanee for uncolletible accounts Comnon stock Retained earnings Totaln 86,000 27,000 man) 217,000 42,000 18,000 282,000 1,570,000 639,000 154,000 42, 000 260,000 212,000 191,000 12,000 18,000 42,000 62,000 304,000 2,008,000 178-000 3,659,000 3,659,000Explanation / Answer
Current Assets - Current assets are assets which can be either converted into cash or can sold within one year or lesser period of the balance sheet date.
So, here, Loans due from employees, short term investments, prepaid expenses, Note receivable of $52,000 are classified as current assets.
Current Liabilities - Current liabilities are liabilities which can be either set off against any asset or can be paid off within one year or lesser period of the balance sheet date.
So here, dividend payable, 80% deferred revenue are classified as current liability.
Balance sheet for Vosburgh Electronics Corporation as at December 31, 2018
Particulars Amount Current Assets Cash 71,000 Accounts receivable, net 117,000 Short term Investments (Marketable Securities and T-bills) 186,000 Loans to employees 42,000 Inventories 217,000 Prepaid Expenses 18,000 Notes Receivable 52,000 Interest Receivable 14,000 Non-Current Assets Land 282,000 Building, net 948,000 Machinery & Equipment 427,000 Patent 154,000 Franchise 42,000 Notes Receivable 208,000 Long Term Investments 37,000 Total Assets 2,815,000 LIABILITIES Current Liabilities Accounts Payable 119,000 Dividend Payable 12,000 Interest Payable 18,000 Deferred Revenue (80%) 49,600 Taxes Payable 42,000 Non-Current Liabilities Deferred Revenue (20%) 12,400 Notes Payable 304,000 Equity Common Stock (520,000 shares issued and outstanding) 2,008,000 Retained Earnings 178,000 Total Equity and Liabilities 2,815,000Related Questions
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