current asset
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question

Transcribed Image Text:1. FAN Company has the following data for the year 2021 (in thousand)
January 1, 2021
December 31, 2021
Raw Materials Inventory
$16,300
$15,000
Work-in-process Inventory
$40,000
$40,110
Finished Goods Inventory
$49,600
$44,256
During 2021 the amount of raw material purchased was $21,700 and direct labor costs
incurred were $10,100.
The finance department also provides the following additional data :
Factory Machinery Rent
$
1,840
Indirect Materials
$
3,400
Delivery Expense
$
760
Factory Utilities
$4
1,200
Depreciation on Factory Building
$
3,500
Sales Commissions
$
340
Administrative Expense
$
1,620
Factory Insurance
$
1,266
Sales Revenue
$
98,600
Factory Manager's Salary
$
2,240
Indirect Labor
$
5,670
Instructions:
c. Assume that FAN Company's accounting records show the balance of the following
current asset accounts on December 31, 2021 (in thousand):
Cash
$110,250
Accounts Receivable
$ 12,440
Prepaid Expenses
$9,250
Supplies
$ 500
Short-Term Investment
$ 550
Prepare the current asset section of FAN Company's Balance Sheet on December 31,
2021!
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education