Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: a. $55,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $29,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $210,000. The notes are payable in annual installments of $25,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $17,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $90,000. Cone intends to sell one-half of the securities in 2025. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.

Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: a. $55,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $29,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $210,000. The notes are payable in annual installments of $25,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $17,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $90,000. Cone intends to sell one-half of the securities in 2025. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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A company collects an honored note with a maturity date of 24 months from establishment, a 10% interest rate, and an initial loan amount of $30,000. Which accounts are used to record collection of the honored note at maturity date? A. Interest Revenue, Interest Expense, Cash B. Interest Receivable, Cash, Notes Receivable C. Interest Revenue, Interest Receivable, Cash, Notes Receivable D. Notes Receivable, Interest Revenue, Cash, Interest Expense
Inferring Accounts Receivable Amounts At the end of 2019, Karras Inc. had a debit balance of 141,120 in its accounts receivable. Additionally, Karras had a credit balance in its allowance for doubtful accounts of 4,350 and 9,420 at the beginning and end of the year, respectively. During the year, Karras made credit sales of 1,530,000, collected receivables in the amount of 1,445,700, and recorded bad debt expense of 83, 750. Required: Next Level Compute the amount of accounts receivable that Karras wrote off during the year and the amount of accounts receivable at the beginning of the year.
Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: a. $68,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $42,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $236,000. The notes are payable in annual installments of $38,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $30,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $116,000. Cone intends to sell one-half of the securities in 2025. Required: Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported. X Answer is not complete. CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Current assets: Prepaid rent Investment in equity securities…
Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the proper classification of the following items: $52,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. Prepaid rent of $26,000, covering the period January 1, 2025, through December 31, 2026. Notes payable of $204,000. The notes are payable in annual installments of $22,000 each, with the first installment payable on March 1, 2025. Accrued interest payable of $14,000 related to the notes payable is due June 30, 2025. Investment in equity securities of other corporations, $84,000. Cone intends to sell one-half of the securities in 2025. Prepare the asset and liability sections of a classified balance sheet to show how each of the above items should be reported.
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