Riverbed Corporation’s adjusted trial balance contained the following asset accounts at December 31, 2020: Cash $7,280, Land $49
,100, Patents $16,600, Accounts Receivable $91,620, Prepaid Insurance $5,330, Inventory $34,100, Allowance for Doubtful Accounts $4,730, and Equity Investments (to be sold in the next quarter) $12,540. Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)
1 answer:
Answer:
Explanation:
Balance sheet: In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:
Total assets = Total liabilities + stockholder equity
The debit and credit side of the balance sheet should always be equal and balanced.
Moreover, it always is prepared on the specified date.
The land is a fixed asset and patents is an intangible asset. Thus these items would not come in the current asset section
The preparation of the current assets section of the balance sheet is presented in the spreadsheet. Kindly find the attachment below:
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