Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: a. $66,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. b. Prepaid rent of $40,000, covering the period January 1, 2022, through December 31, 2023. c. Notes payable of $232,000. The notes are payable in annual installments of $36,000 each, with the first installment payable on March 1, 2022. d. Accrued interest payable of $28,000 related to the notes payable. e. Investment in equity securities of other corporations, $112,000. Cone intends to sell one-half of the securities in 2022. 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 Balance Sheet (Partial) At December 31, 2021 Assets

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper
classification of the following items:
a. $66,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025.
b. Prepaid rent of $40,000, covering the period January 1, 2022, through December 31, 2023.
c. Notes payable of $232,0o00. The notes are payable in annual installments of $36,000 each, with the first installment payable on
March 1, 2022.
d. Accrued interest payable of $28,000 related to the notes payable.
e. Investment in equity securities of other corporations, $112,000. Cone intends to sell one-half of the securities in 2022.
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
Balance Sheet (Partial)
At December 31, 2021
Assets
Transcribed Image Text:Cone Corporation is in the process of preparing its December 31, 2021, balance sheet. There are some questions as to the proper classification of the following items: a. $66,000 in cash restricted in a savings account to pay bonds payable. The bonds mature in 2025. b. Prepaid rent of $40,000, covering the period January 1, 2022, through December 31, 2023. c. Notes payable of $232,0o00. The notes are payable in annual installments of $36,000 each, with the first installment payable on March 1, 2022. d. Accrued interest payable of $28,000 related to the notes payable. e. Investment in equity securities of other corporations, $112,000. Cone intends to sell one-half of the securities in 2022. 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 Balance Sheet (Partial) At December 31, 2021 Assets
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