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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. $66,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $40,000, covering the period January 1, 2025, through December 31, 2026. 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, 2025. d. Accrued interest payable of $28,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $112,000. 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.

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. $66,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $40,000, covering the period January 1, 2025, through December 31, 2026. 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, 2025. d. Accrued interest payable of $28,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $112,000. 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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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. $66,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $40,000, covering the period January 1, 2025, through December 31, 2026. 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, 2025. d. Accrued interest payable of $28,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $112,000. 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: Current liabilities: Long-term liabilities: CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Assets Liabilities and Shareholders' Equity
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. $66,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $40,000, covering the period January 1, 2025, through December 31, 2026. 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, 2025. d. Accrued interest payable of $28,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $112,000. 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: Current liabilities: Long-term liabilities: CONE CORPORATION Balance Sheet (Partial) At December 31, 2024 Assets Liabilities and Shareholders' Equity
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