1. FAN Company has the following data for the year 2021 (in thousand)January 1, 2021December 31, 2021Raw Materials Inventory$16,300$15,000Work-in-process Inventory$40,000$40,110Finished Goods Inventory$49,600$44,256During 2021 the amount of raw material purchased was $21,700 and direct labor costsincurred were $10,100.The finance department also provides the following additional data :Factory Machinery Rent$1,840Indirect Materials$3,400Delivery Expense$760Factory Utilities$41,200Depreciation on Factory Building$3,500Sales Commissions$340Administrative Expense$1,620Factory Insurance$1,266Sales Revenue$98,600Factory Manager's Salary$2,240Indirect Labor$5,670Instructions:c. Assume that FAN Company's accounting records show the balance of the followingcurrent asset accounts on December 31, 2021 (in thousand):Cash$110,250Accounts Receivable$ 12,440Prepaid Expenses$9,250Supplies$ 500Short-Term Investment$ 550Prepare the current asset section of FAN Company's Balance Sheet on December 31,2021!

Definition: Current Assets; Assets which are used or sold in the business over the year are known…

Answered: current asset

Business

Accounting

current asset

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

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!

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