Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021.Account TitleDebits36,000207,00042,000150, 0008,000CreditsCash and cash equivalentsAccounts receivableRaw materials inventoryNotes receivableInterest receivableInterest payableInvestmentsLandBuildingsAccumulated depreciation-buildingsWork in process inventoryFinished goods inventoryEquipmentAccumulated depreciation- equipmentFranchise (net of amortization)Prepaid insurance (for the next year)Deferred revenueAccounts payableNotes payableSalaries payableAllowance for uncollectible accountsSales reyenue13,00045,000130,0001,560,000770, 00044,00095,000430,000260,0001,320, 00066,00054, 000300,000560,00012,00030,0008,500, 000Cost of goods soldSalaries expense530,00054,000 Notes payableSalaries payableAllowance for uncollectible accountsSales revenueCost of goods soldSalaries expense560, 00012,00030, 0008,500, 000530,00054, 000Additional information:1. The notes receivable, along with any accrued interest, are due on November 1, 2022.2. The notes payable are due in 2026. Interest is payable annually.3. The investments consist of equity securities of other corporations. Management does not intend to sell any of the secutities in thenext year.4. Deferred revenue will be recognized equally over the next 18 months.Required:Determine the company's working capital at December 31, 2021. (Do not round your intermediate calculations.)Working capital

Working capital is calculated by deducting the current liabilities from the current assets.

Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021. Account Title Debits 36,000 207,000 42,000 150, 000 8,000 Credits Cash and cash equivalents Accounts receivable Raw materials inventory Notes receivable Interest receivable Interest payable Investments 13,000 45,000 130, 000 1,560, 000 Land Buildings Accumulated depreciation-buildings 770, 000

Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021. Account Title Debits 36,000 207,000 42,000 150, 000 8,000 Credits Cash and cash equivalents Accounts receivable Raw materials inventory Notes receivable Interest receivable Interest payable Investments 13,000 45,000 130, 000 1,560, 000 Land Buildings Accumulated depreciation-buildings 770, 000

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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Question

Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021.
Account Title
Debits
36,000
207,000
42,000
150, 000
8,000
Credits
Cash and cash equivalents
Accounts receivable
Raw materials inventory
Notes receivable
Interest receivable
Interest payable
Investments
Land
Buildings
Accumulated depreciation-buildings
Work in process inventory
Finished goods inventory
Equipment
Accumulated depreciation- equipment
Franchise (net of amortization)
Prepaid insurance (for the next year)
Deferred revenue
Accounts payable
Notes payable
Salaries payable
Allowance for uncollectible accounts
Sales reyenue
13,000
45,000
130,000
1,560,000
770, 000
44,000
95,000
430,000
260,000
1,320, 000
66,000
54, 000
300,000
560,000
12,000
30,000
8,500, 000
Cost of goods sold
Salaries expense
530,000
54,000

Notes payable
Salaries payable
Allowance for uncollectible accounts
Sales revenue
Cost of goods sold
Salaries expense
560, 000
12,000
30, 000
8,500, 000
530,000
54, 000
Additional information:
1. The notes receivable, along with any accrued interest, are due on November 1, 2022.
2. The notes payable are due in 2026. Interest is payable annually.
3. The investments consist of equity securities of other corporations. Management does not intend to sell any of the secutities in the
next year.
4. Deferred revenue will be recognized equally over the next 18 months.
Required:
Determine the company's working capital at December 31, 2021. (Do not round your intermediate calculations.)
Working capital

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