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The Coronado Pub provides catering services to local businesses. The following information was available for The Coronado Pub for the years ended December 31, 2019 and 2020. Cash Accounts receivable Allowance for doubtful accounts Other current assets Current liabilities $ December 31, 2019 1,880 46,500 600 8,810 36,400 $ December 31, 2020 1,700 ? ? 7,830 44,700

The Coronado Pub provides catering services to local businesses. The following information was available for The Coronado Pub for the years ended December 31, 2019 and 2020. Cash Accounts receivable Allowance for doubtful accounts Other current assets Current liabilities $ December 31, 2019 1,880 46,500 600 8,810 36,400 $ December 31, 2020 1,700 ? ? 7,830 44,700

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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Prepare the current assets section of The Coronado Pub's balance sheet at December 31, 2020. (Round answers to O decimal places, e.g. 125.) THE CORONADO PUB Balance Sheet For the Year Ended December 31, 2020 < $ LA $ +A
Transcribed Image Text:Prepare the current assets section of The Coronado Pub's balance sheet at December 31, 2020. (Round answers to O decimal places, e.g. 125.) THE CORONADO PUB Balance Sheet For the Year Ended December 31, 2020 < $ LA $ +A
The Coronado Pub provides catering services to local businesses. The following information was available for The Coronado Pub for the years ended December 31, 2019 and 2020. Cash Accounts receivable Allowance for doubtful accounts Other current assets Current liabilities Total credit sales Collections on accounts receivable 1. 2. 3. December 31, 2019 $ 1,880 46,500 4. 600 8,810 36,400 201,000 188,000 $ December 31, 2020 1,700 ? Coronado management is preparing for a meeting with its bank concerning renewal of a loan and has collected the following information related to the above balances. ? 7,830 44,700 250,000 229,000 The cash reported at December 31, 2020, reflects the following items: petty cash $1,600 and postage stamps $100. The other current assets balance at December 31, 2020, includes the checking account balance of $4,260. On November 30, 2020, Coronado agreed to accept a 6-month, $4,890 note bearing 12% interest, payable at maturity, from a major client in settlement of a $4,890 bill. The above balances do not reflect this transaction. Coronado factored some accounts receivable at the end of 2020. It transferred accounts totaling $10,000 to Final Factor, Inc. with recourse. Final Factor will receive the collections from Coronado's customers and will retain 2% of the balances. Final Factor assesses Coronado a finance charge of 3% on this transfer. The fair value of the recourse liability is $400. However, management has determined that the amount due from the factor and the fair value of the resource obligation have not been recorded, and neither are included in the balances above. Coronado charged off uncollectible accounts with balances of $1,600. On the basis of the latest available information, the 2020 provision for bad debts is estimated to be 2.5% of accounts receivable.
Transcribed Image Text:The Coronado Pub provides catering services to local businesses. The following information was available for The Coronado Pub for the years ended December 31, 2019 and 2020. Cash Accounts receivable Allowance for doubtful accounts Other current assets Current liabilities Total credit sales Collections on accounts receivable 1. 2. 3. December 31, 2019 $ 1,880 46,500 4. 600 8,810 36,400 201,000 188,000 $ December 31, 2020 1,700 ? Coronado management is preparing for a meeting with its bank concerning renewal of a loan and has collected the following information related to the above balances. ? 7,830 44,700 250,000 229,000 The cash reported at December 31, 2020, reflects the following items: petty cash $1,600 and postage stamps $100. The other current assets balance at December 31, 2020, includes the checking account balance of $4,260. On November 30, 2020, Coronado agreed to accept a 6-month, $4,890 note bearing 12% interest, payable at maturity, from a major client in settlement of a $4,890 bill. The above balances do not reflect this transaction. Coronado factored some accounts receivable at the end of 2020. It transferred accounts totaling $10,000 to Final Factor, Inc. with recourse. Final Factor will receive the collections from Coronado's customers and will retain 2% of the balances. Final Factor assesses Coronado a finance charge of 3% on this transfer. The fair value of the recourse liability is $400. However, management has determined that the amount due from the factor and the fair value of the resource obligation have not been recorded, and neither are included in the balances above. Coronado charged off uncollectible accounts with balances of $1,600. On the basis of the latest available information, the 2020 provision for bad debts is estimated to be 2.5% of accounts receivable.
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