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Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024. Account Title Cash Accounts receivable. Raw materials Notes receivable Interest receivable Interest payable Investment in debt securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Accumulated depreciation-equipment Patent (net) Prepaid rent (for the next two years) Deferred revenue Accounts payable Notes payable Restricted cash (for payment of notes payable) Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense Debits $ 26,000 142,000 30,000 106,000 9,000 38,000 56,000 1,420,000 48,000 95,000 312,000 126,000 66,000 86,000 456,000 34,000 Credits $ 11,000 626,000 136,000 42,000 186,000 460,000 19,000 920,000 Additional Information: 1. The notes receivable, along with any interest receivable, are due on November 22, 2025. 2. The notes payable are due in 2028. Interest is payable annually. 3. The investment in debt securities consist of treasury bills, all of which mature next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.

Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024. Account Title Cash Accounts receivable. Raw materials Notes receivable Interest receivable Interest payable Investment in debt securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Accumulated depreciation-equipment Patent (net) Prepaid rent (for the next two years) Deferred revenue Accounts payable Notes payable Restricted cash (for payment of notes payable) Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense Debits $ 26,000 142,000 30,000 106,000 9,000 38,000 56,000 1,420,000 48,000 95,000 312,000 126,000 66,000 86,000 456,000 34,000 Credits $ 11,000 626,000 136,000 42,000 186,000 460,000 19,000 920,000 Additional Information: 1. The notes receivable, along with any interest receivable, are due on November 22, 2025. 2. The notes payable are due in 2028. Interest is payable annually. 3. The investment in debt securities consist of treasury bills, all of which mature next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.

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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Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024. Account Title Cash Accounts receivable Raw materials Notes receivable. Interest receivable Interest payable Investment in debt securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Accumulated depreciation-equipment Patent (net) Prepaid rent (for the next two years) Deferred revenue Accounts payable Notes payable Restricted cash (for payment of notes payable); Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense Debits $ 26,000 142,000 30,000 106,000 9,000 38,000 56,000 1,420,000. 48,000 95,000 312,000 126,000 66,000 86,000 456,000 34,000 Credits $ 11,000 626,000 136,000 42,000 186,000 460,000 19,000 920,000 Additional Information: 1. The notes receivable, along with any interest receivable, are due on November 22, 2025. 2. The notes payable are due in 2028. Interest is payable annually. 3. The investment in debt securities consist of treasury bills, all of which mature next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.
Transcribed Image Text:Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024. Account Title Cash Accounts receivable Raw materials Notes receivable. Interest receivable Interest payable Investment in debt securities Land Buildings Accumulated depreciation-buildings Work in process Finished goods Equipment Accumulated depreciation-equipment Patent (net) Prepaid rent (for the next two years) Deferred revenue Accounts payable Notes payable Restricted cash (for payment of notes payable); Allowance for uncollectible accounts Sales revenue Cost of goods sold Rent expense Debits $ 26,000 142,000 30,000 106,000 9,000 38,000 56,000 1,420,000. 48,000 95,000 312,000 126,000 66,000 86,000 456,000 34,000 Credits $ 11,000 626,000 136,000 42,000 186,000 460,000 19,000 920,000 Additional Information: 1. The notes receivable, along with any interest receivable, are due on November 22, 2025. 2. The notes payable are due in 2028. Interest is payable annually. 3. The investment in debt securities consist of treasury bills, all of which mature next year. 4. Deferred revenue will be recognized as revenue equally over the next two years. Required: Determine the company's working capital (current assets minus current liabilities) at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.
Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals $ 67,000 132,000 71,000 211,000 9,000 112,000 431,000 121,000 21,000 $ 1,175,000 $ 111,000 71,000 97,000 163,000 31,000 251,000 333,000 118,000 $ 1,175,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $41,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. 2. The land account includes land which cost $36,000 that the company has not used and is currently listed for sale. 3. The cash account includes $26,000 restricted in a fund to pay bonds payable that mature in 2027 and $34,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $41,000 note due in six months. b. a note in c. a $61,000 note due in five annual installments of $12,200 each, with the next installment due February 15, 2025. 5. The $71,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000. 6. The common stock account represents 111,000 shares of no par value common stock issued and outstanding. The corporation has 600,000 shares authorized. Required: Prepare a classified balance sheet for the Almway Corporation at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.
Transcribed Image Text:Cash Investment in equity securities Accounts receivable Inventory Prepaid insurance (for the next 9 months) Land Buildings Accumulated depreciation-buildings Equipment Accumulated depreciation-equipment Patent (net) Accounts payable Notes payable Interest payable Bonds Payable Common stock Retained earnings Totals $ 67,000 132,000 71,000 211,000 9,000 112,000 431,000 121,000 21,000 $ 1,175,000 $ 111,000 71,000 97,000 163,000 31,000 251,000 333,000 118,000 $ 1,175,000 Additional information: 1. The investment in equity securities account includes an investment in common stock of another corporation of $41,000 which management intends to hold for at least three years. The balance of these investments is intended to be sold in the coming year. 2. The land account includes land which cost $36,000 that the company has not used and is currently listed for sale. 3. The cash account includes $26,000 restricted in a fund to pay bonds payable that mature in 2027 and $34,000 restricted in a three-month Treasury bill. 4. The notes payable account consists of the following: a. a $41,000 note due in six months. b. a note in c. a $61,000 note due in five annual installments of $12,200 each, with the next installment due February 15, 2025. 5. The $71,000 balance in accounts receivable is net of an allowance for uncollectible accounts of $8,000. 6. The common stock account represents 111,000 shares of no par value common stock issued and outstanding. The corporation has 600,000 shares authorized. Required: Prepare a classified balance sheet for the Almway Corporation at December 31, 2024. Note: Amounts to be deducted should be indicated by a minus sign.
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