Question

Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company: Account Title Dr. Cr. Cash $ 23,000 Accounts receivable 16,000 Prepaid insurance 6,600 Equipment 100,000 Accumulated depreciation—Equipment $ 50,000 Land 95,000 Accounts payable 17,000 Interest payable 2,400 Unearned revenue 5,000 Long-term notes payable 30,000 Retained earnings 136,200 Totals $ 240,600 $ 240,600

Answer 1

Answer:

$45,600

Explanation:

The total assets comprises of current assets, fixed assets and the intangible assets

The current assets includes cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.

The computation of the current asset is shown below:

= Cash + Accounts receivable + Prepaid insurance

= $23,000 + $16,000 + $6,600

= $45,600