Roland Company's trial balance reflected the following account balances at December 31, 2021: Accounts receivable (net) Short-term investments Accumulated depreciation on equipment and furniture Cash Inventory Equipment Patent Short-term investments Accumulated depreciation on equipment and furniture Cash Inventory Equipment Patent Prepaid expenses Land O 82,000 O 110,000 O 70,000 38,000 O 105,000 O 90,000 3,000 7,500 32,000 30,000 12,500 4,000 3,000 7,500 32,000 30,000 12,500 4,000 2,000 In Roland Company's December 31, 2021 balance sheet, the total amount of current assets is 18,000
Roland Company's trial balance reflected the following account balances at December 31, 2021: Accounts receivable (net) Short-term investments Accumulated depreciation on equipment and furniture Cash Inventory Equipment Patent Short-term investments Accumulated depreciation on equipment and furniture Cash Inventory Equipment Patent Prepaid expenses Land O 82,000 O 110,000 O 70,000 38,000 O 105,000 O 90,000 3,000 7,500 32,000 30,000 12,500 4,000 3,000 7,500 32,000 30,000 12,500 4,000 2,000 In Roland Company's December 31, 2021 balance sheet, the total amount of current assets is 18,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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Depreciation Methods
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Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Transcribed Image Text:Roland Company's trial balance reflected the following account balances at December 31, 2021:
Accounts receivable (net)
Short-term investments
Accumulated depreciation on equipment and furniture
Cash
Inventory
Equipment
Patent
Short-term investments
Accumulated depreciation on equipment and furniture
Cash
Inventory
Equipment
Patent
Prepaid expenses
Land
O 82,000
O 110,000
O 70,000
O 105,000
38,000
O90,000
3,000
7,500
32,000
30,000
12,500
4,000
3,000
7,500
32,000
30,000
12,500
4,000
2,000
In Roland Company's December 31, 2021 balance sheet, the total amount of current assets is
18,000
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