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When preparing a report form of a Balance Sheet for a merchandising business, assume that the Ajusted Trial Balance has the following account and their balances: Cash, $50,000; Accounts Receivable, $60,000; Merchandise Inventory, $100,000; Land, $30,000; Equipment, $140,000; Accumulated Depreciation-Equipment, $40,000. What would be the total amount of Current Assets for this Balance Sheet? Assets Current Assets: Tdtal Current Assets Property, Plant, & Equipment Total Property Plant & Equip. $50,000 $110,000 $210,000 $240,000

When preparing a report form of a Balance Sheet for a merchandising business, assume that the Ajusted Trial Balance has the following account and their balances: Cash, $50,000; Accounts Receivable, $60,000; Merchandise Inventory, $100,000; Land, $30,000; Equipment, $140,000; Accumulated Depreciation-Equipment, $40,000. What would be the total amount of Current Assets for this Balance Sheet? Assets Current Assets: Tdtal Current Assets Property, Plant, & Equipment Total Property Plant & Equip. $50,000 $110,000 $210,000 $240,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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## Question 37 When preparing a report form of a Balance Sheet for a merchandising business, assume that the Adjusted Trial Balance has the following accounts and their balances: - Cash, $50,000 - Accounts Receivable, $60,000 - Merchandise Inventory, $100,000 - Land, $30,000 - Equipment, $140,000 - Accumulated Depreciation-Equipment, $40,000 **What would be the total amount of Current Assets for this Balance Sheet?** Below is the depiction of the balance sheet structure: ### Assets #### Current Assets: - Cash, $50,000 - Accounts Receivable, $60,000 - Merchandise Inventory, $100,000 **Total Current Assets:** #### Property, Plant, & Equipment: - Land, $30,000 - Equipment, $140,000 - Less: Accumulated Depreciation-Equipment, $40,000 **Total Property Plant & Equipment:** ### Options: - $50,000 - $110,000 - $210,000 - $240,000 The total amount of Current Assets would be the sum of Cash, Accounts Receivable, and Merchandise Inventory: $50,000 (Cash) + $60,000 (Accounts Receivable) + $100,000 (Merchandise Inventory) = $210,000. Hence, the correct answer is $210,000.
Transcribed Image Text:## Question 37 When preparing a report form of a Balance Sheet for a merchandising business, assume that the Adjusted Trial Balance has the following accounts and their balances: - Cash, $50,000 - Accounts Receivable, $60,000 - Merchandise Inventory, $100,000 - Land, $30,000 - Equipment, $140,000 - Accumulated Depreciation-Equipment, $40,000 **What would be the total amount of Current Assets for this Balance Sheet?** Below is the depiction of the balance sheet structure: ### Assets #### Current Assets: - Cash, $50,000 - Accounts Receivable, $60,000 - Merchandise Inventory, $100,000 **Total Current Assets:** #### Property, Plant, & Equipment: - Land, $30,000 - Equipment, $140,000 - Less: Accumulated Depreciation-Equipment, $40,000 **Total Property Plant & Equipment:** ### Options: - $50,000 - $110,000 - $210,000 - $240,000 The total amount of Current Assets would be the sum of Cash, Accounts Receivable, and Merchandise Inventory: $50,000 (Cash) + $60,000 (Accounts Receivable) + $100,000 (Merchandise Inventory) = $210,000. Hence, the correct answer is $210,000.
### Financial Accounting Assessment #### Question 38 When preparing a report form of a Balance Sheet for a merchandising business, assume that the Adjusted Trial Balance has the following accounts and balances: - Cash: $50,000 - Accounts Receivable: $60,000 - Merchandise Inventory: $100,000 - Land: $30,000 - Equipment: $140,000 - Accumulated Depreciation-Equipment: $40,000 **Question:** What would be the book value of the Equipment for this Balance Sheet? - $100,000 - $40,000 - $140,000 - $180,000 **Explanation:** The book value of the equipment is calculated by subtracting the accumulated depreciation from the equipment's cost. \[ \text{Book Value} = \text{Cost of Equipment} - \text{Accumulated Depreciation} \] \[ \text{Book Value} = \$140,000 - \$40,000 = \$100,000 \] #### Question 39 When preparing a report form of a Balance Sheet for a merchandising business, assume that the Adjusted Trial Balance has the following accounts and balances: - Accounts Payable: $22,000 - Customers Refund Payable: $3,000 - Wages Payable: $2,000 - Mortgage Notes Payable (due in 10 years): $123,000 (current portion of the note, $3,000) **Question:** What would be the Total Current Liabilities for this Balance Sheet? - $150,000 - $30,000 - $27,000 - $25,000 **Explanation:** Current liabilities include obligations that will be settled within one year. We sum up the current portion of mortgage notes payable and other current liabilities. \[ \text{Total Current Liabilities} = \text{Accounts Payable} + \text{Customers Refund Payable} + \text{Wages Payable} + \text{Current portion of Mortgage Notes Payable} \] \[ \text{Total Current Liabilities} = \$22,000 + \$3,000 + \$2,000 + \$3,000 = \$30,000 \] #### Question 40 When preparing a report form of a Balance Sheet for a merchandising business, assume that the Adjusted Trial Balance has the following accounts and balances: - Accounts Payable: $
Transcribed Image Text:### Financial Accounting Assessment #### Question 38 When preparing a report form of a Balance Sheet for a merchandising business, assume that the Adjusted Trial Balance has the following accounts and balances: - Cash: $50,000 - Accounts Receivable: $60,000 - Merchandise Inventory: $100,000 - Land: $30,000 - Equipment: $140,000 - Accumulated Depreciation-Equipment: $40,000 **Question:** What would be the book value of the Equipment for this Balance Sheet? - $100,000 - $40,000 - $140,000 - $180,000 **Explanation:** The book value of the equipment is calculated by subtracting the accumulated depreciation from the equipment's cost. \[ \text{Book Value} = \text{Cost of Equipment} - \text{Accumulated Depreciation} \] \[ \text{Book Value} = \$140,000 - \$40,000 = \$100,000 \] #### Question 39 When preparing a report form of a Balance Sheet for a merchandising business, assume that the Adjusted Trial Balance has the following accounts and balances: - Accounts Payable: $22,000 - Customers Refund Payable: $3,000 - Wages Payable: $2,000 - Mortgage Notes Payable (due in 10 years): $123,000 (current portion of the note, $3,000) **Question:** What would be the Total Current Liabilities for this Balance Sheet? - $150,000 - $30,000 - $27,000 - $25,000 **Explanation:** Current liabilities include obligations that will be settled within one year. We sum up the current portion of mortgage notes payable and other current liabilities. \[ \text{Total Current Liabilities} = \text{Accounts Payable} + \text{Customers Refund Payable} + \text{Wages Payable} + \text{Current portion of Mortgage Notes Payable} \] \[ \text{Total Current Liabilities} = \$22,000 + \$3,000 + \$2,000 + \$3,000 = \$30,000 \] #### Question 40 When preparing a report form of a Balance Sheet for a merchandising business, assume that the Adjusted Trial Balance has the following accounts and balances: - Accounts Payable: $
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