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. $50,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $24,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $200,000. The notes are payable in annual installments of $20,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $12,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $80,000. 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. Current assets Long-term investments: Other assets: CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Assets Saved $ 40,000 12,000 50,000 40,000 12,000 Prev 3 of 5 333 www. Next > Current assets: Long-term investments: Other assets: Current liabilities: CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Long-term liabilities: Assets Liabilities and Shareholders' Equity $ 40,000 12,000 50,000 40,000 12,000 Prov
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. $50,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $24,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $200,000. The notes are payable in annual installments of $20,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $12,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $80,000. 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. Current assets Long-term investments: Other assets: CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Assets Saved $ 40,000 12,000 50,000 40,000 12,000 Prev 3 of 5 333 www. Next > Current assets: Long-term investments: Other assets: Current liabilities: CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Long-term liabilities: Assets Liabilities and Shareholders' Equity $ 40,000 12,000 50,000 40,000 12,000 Prov
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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. $50,000 in cash restricted in a savings account to pay debt. The debt matures in 2028.
b. Prepaid rent of $24,000, covering the period January 1, 2025, through December 31, 2026.
c. Notes payable of $200,000. The notes are payable in annual installments of $20,000 each, with the first installment payable on
March 1, 2025.
d. Accrued interest payable of $12,000 related to the notes payable is due June 30, 2025.
e. Investment in equity securities of other corporations, $80,000. 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.
Current assets
Long-term investments:
Other assets:
CONE CORPORATION
Balance Sheet (Partial)
At December 31, 2024
Assets
Saved
$ 40,000
12,000
50,000
40,000
12,000
Prev
3 of 5
333
www.
Next >
Transcribed Image Text:Current assets:
Long-term investments:
Other assets:
Current liabilities:
CONE CORPORATION
Balance Sheet (Partial)
At December 31, 2024
Long-term liabilities:
Assets
Liabilities and Shareholders' Equity
$ 40,000
12,000
50,000
40,000
12,000
Prov
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