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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: $63,000 in cash restricted in a savings account to pay debt. The debt matures in 2028 b. Prepaid rent of $37,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $226,000. The notes are payable in annual installments of $33,000 each, with the first installment payable on March 1, 2025 d. Accrued interest payable of $25,000 related to the notes payable is due June 30, 2025. e Investment in equity securities of other corporations, $106,000. 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. D

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: $63,000 in cash restricted in a savings account to pay debt. The debt matures in 2028 b. Prepaid rent of $37,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $226,000. The notes are payable in annual installments of $33,000 each, with the first installment payable on March 1, 2025 d. Accrued interest payable of $25,000 related to the notes payable is due June 30, 2025. e Investment in equity securities of other corporations, $106,000. 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. D

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 $63,000 in cash restricted in a savings account to pay debt. The debt matures in 2028 b. Prepaid rent of $37,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $226,000. The notes are payable in annual installments of $33,000 each, with the first installment payable on March 1, 2025 d. Accrued interest payable of $25,000 related to the notes payable is due June 30, 2025. e Investment in equity securities of other corporations, $106,000 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 Propaid rent Investment in equity securities Long-term investments Restricted cash Answer is not complete. CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Prepaid rent Investment in equity securities Other assets Assets • O S 18,500 53,000 63.000 53.000 185,000 O D
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 $63,000 in cash restricted in a savings account to pay debt. The debt matures in 2028 b. Prepaid rent of $37,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $226,000. The notes are payable in annual installments of $33,000 each, with the first installment payable on March 1, 2025 d. Accrued interest payable of $25,000 related to the notes payable is due June 30, 2025. e Investment in equity securities of other corporations, $106,000 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 Propaid rent Investment in equity securities Long-term investments Restricted cash Answer is not complete. CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Prepaid rent Investment in equity securities Other assets Assets • O S 18,500 53,000 63.000 53.000 185,000 O D
Current assets Prepaid rent Investment in equity secunties CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Assets Long-term investments Restricted cash Investment in equity securities Other assets Prepaid rent Current liabilities Liabilities and Shareholders' Equity Notes payable (current) Interest payable Long-term liabilities Notes payable (current matunties of long-term debt) * $ 18,500 53,000 63,000 53,000 U 165.000 $ 35,000 O 25,000 191,000
Transcribed Image Text:Current assets Prepaid rent Investment in equity secunties CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Assets Long-term investments Restricted cash Investment in equity securities Other assets Prepaid rent Current liabilities Liabilities and Shareholders' Equity Notes payable (current) Interest payable Long-term liabilities Notes payable (current matunties of long-term debt) * $ 18,500 53,000 63,000 53,000 U 165.000 $ 35,000 O 25,000 191,000
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