Question

Culver Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2017: Cash $8,220, Land $40,800, Patents $16,000, Accounts Receivable $97,530, Prepaid Insurance $6,040, Inventory $34,900, Allowance for Doubtful Accounts $4,520, and Equity Investments (to be sold in the next quarter) $13,510. Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)

Answer 1

Answer:

See explanation Section

Explanation:

             Culver Corporation

 Balance Sheet (Current Asset only)

        As at December 31, 2017

Particulars                         $                         $

Cash                                                        $8,220                

Accounts Receivable $97,530

Less: Allowance for

Doubtful Accounts       (4,520)             $93,010

Prepaid Insurance                                   $6,040

Inventory                                                $34,900

Equity Investments                                  $13,510

Current Assets                                     $155,680

Note: As equity investment will be sold in the next year, it is shown as current assets. Land and patents are property, plant, and equipment.