Exercise 3-8 (Algo) Balance sheet; current versus long-term classification [LO3-2, 3-3] 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. $67,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $41,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $234,000. The notes are payable in annual installments of $37,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $29,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $114,000. 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.
Exercise 3-8 (Algo) Balance sheet; current versus long-term classification [LO3-2, 3-3] 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. $67,000 in cash restricted in a savings account to pay debt. The debt matures in 2028. b. Prepaid rent of $41,000, covering the period January 1, 2025, through December 31, 2026. c. Notes payable of $234,000. The notes are payable in annual installments of $37,000 each, with the first installment payable on March 1, 2025. d. Accrued interest payable of $29,000 related to the notes payable is due June 30, 2025. e. Investment in equity securities of other corporations, $114,000. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 3-8 (Algo) Balance sheet; current versus long-term classification [LO3-2, 3-3]
Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the
classification of the following items:
proper
a. $67,000 in cash restricted in a savings account to pay debt. The debt matures in 2028.
b. Prepaid rent of $41,000, covering the period January 1, 2025, through December 31, 2026.
c. Notes payable of $234,000. The notes are payable in annual installments of $37,000 each, with the first installment payable on
March 1, 2025.
d. Accrued interest payable of $29,000 related to the notes payable is due June 30, 2025.
e. Investment in equity securities of other corporations, $114,000. 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9283cc5e-fb3f-4662-b477-ea9585f02471%2F96197b97-daeb-41ec-bff1-9975101bebc4%2Ffwi7jg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Exercise 3-8 (Algo) Balance sheet; current versus long-term classification [LO3-2, 3-3]
Cone Corporation is in the process of preparing its December 31, 2024, balance sheet. There are some questions as to the
classification of the following items:
proper
a. $67,000 in cash restricted in a savings account to pay debt. The debt matures in 2028.
b. Prepaid rent of $41,000, covering the period January 1, 2025, through December 31, 2026.
c. Notes payable of $234,000. The notes are payable in annual installments of $37,000 each, with the first installment payable on
March 1, 2025.
d. Accrued interest payable of $29,000 related to the notes payable is due June 30, 2025.
e. Investment in equity securities of other corporations, $114,000. 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.
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