neg e ee1, balance seet hare some questions as to the proper classification of t

Question

neg e ee1, balance seet hare some questions as to the proper classification of the following items a. $70,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2020. b. Prepaid rent of $44,000, covering the period January 1, 2017, through December 31, 2018 c. Note payable of $240,000. The note is payable in annual installments of $40,000 each, with the first installment payable on March 1, 2017 d. Accrued interest payable of $32,000 related to the note payable e. Investment in marketable securities of other corporations, $120,000. Cone intends to sell one-half of the securities in 2017 Required: Prepare a partial classified balance sheet to show

Explanation / Answer

Cone Corporation Partial Classified BALANCE SHEET FOR THE YEAR ENDED 2016 Assets Amount Current Assets Marketable Securities                       60,000 Prepaid Rent                       22,000 Total Current                       82,000 Investments: Bonds Sinking Fund                       70,000 Marketable Securities                       60,000 Other Assets (prepaid rent for 2018)                       22,000 Total Non Current                    1,52,000 Total Assets                    2,34,000 Liabilities Current Liabilties ST Notes Payable                       40,000 Interest Payable                       32,000 Total Current                       72,000 Notes Payable                    2,00,000 Total Non Current                    2,00,000 Total Liabilities                    2,72,000

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