Multiple Choice Question 119 The following information is for Pearl Real Estate:

ID: 2404855 • Letter: M

Question

Multiple Choice Question 119 The following information is for Pearl Real Estate: Pearl Real Estate Balance Sheet December 31, 2020 Cash Prepaid Insurance Accounts Receivable Inventory Land Held for Investment Land Buildings $ 24700 Accounts Payable 30600 49500 70400 83400 120800 $58900 14800 84000 157700 Salaries and Wages Payable Mortgage Payable Total Liabilities $101600 Less Accumulated Owner's Capital 373900 (20200) 81400 70800 $531600 Depreciation Trademark Total Liabilities and Total Assets Owner's Equity $531600 The total dollar amount of liabilities to be classified as current liabilities is $157700 $14800 $58900 $73700

Explanation / Answer

Current Liabilities = Accounts payable + Salaries and wages payable

Accounts payable =$58900

Salaries and wages payable = $14800

Current Liabilities = 58900+14800 = $73700

Property Plant and Equipment:

Land (location of office building)

$ 108000

Land (held for future use)

$ 147000

Corporate office building

$ 661000

Equipment

$ 439000

Office furniture

$ 161000

Gross value

$ 1516000

Less: Accumulated depreciation

($ 418000)

Net Value

$ 1098000

Note: Inventory falls under current assets and does not become a part of property plant and equipment