Culver Company shows a balance of $237,880 in the Accounts Receivable account on December 31, 2020. The balance consists of the following. Installment accounts due in 2021 $23,900 Installment accounts due after 2021 38,300 Overpayments to vendors 3,540 Due from regular customers, of which $39,570 represents accounts pledged as security for a bank loan 87,500 Advances to employees 1,740 Advance to subsidiary company (due in 2021) 82,900 Illustrate how the information above should be shown on the balance sheet of Culver Company on December 31, 2020. Assume that installment accounts collectible due after December 31, 2018 (Customers) are collectible within the operating cycle of the business. The company’s operating cycle is such that all installment receivables are classified as current.
Culver Company shows a balance of $237,880 in the Accounts Receivable account on December 31, 2020. The balance consists of the following. Installment accounts due in 2021 $23,900 Installment accounts due after 2021 38,300 Overpayments to vendors 3,540 Due from regular customers, of which $39,570 represents accounts pledged as security for a bank loan 87,500 Advances to employees 1,740 Advance to subsidiary company (due in 2021) 82,900 Illustrate how the information above should be shown on the balance sheet of Culver Company on December 31, 2020. Assume that installment accounts collectible due after December 31, 2018 (Customers) are collectible within the operating cycle of the business. The company’s operating cycle is such that all installment receivables are classified as current.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Culver Company shows a balance of $237,880 in the
| Installment accounts due in 2021 | $23,900 | |
| Installment accounts due after 2021 | 38,300 | |
| Overpayments to vendors | 3,540 | |
| Due from regular customers, of which $39,570 represents accounts pledged as security for a bank loan | 87,500 | |
| Advances to employees | 1,740 | |
| Advance to subsidiary company (due in 2021) | 82,900 |
Illustrate how the information above should be shown on the
CULVER COMPANY
Balance Sheet (Partial)
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