Question

Archer Corp has the following account balances listed in alphabetical​ order: Accumulated​ Depreciation, $18,000; Accounts​ Payable, $7,500, Accounts​ Receivable, $13,000;​ Cash, $2,000;​ Equipment, $46,000,​ Land, $21,000, Mortgage​ Payable, $42,000; Prepaid​ Insurance, $5,500;​ Supplies, $1,000; Unearned​ Revenue, $4,000; Wages​ payable, $6,000.​ Archer's longminusterm assets​ are __________.

Answer 1

Answer:

Equipment, $46,000, and Land, $21,000 including Accumulated​ Depreciation, $18,000.

This amounts to $49,000.

Explanation:

The long term asset are also known as the non current assets.

These are assets that will not be used up in a year. It means that the benefits that will accrue to the entity as a result of ownership and control of these assets will be for more than a year. Examples are fixed asset, intangible assets etc

Archer's long term assets​ are Equipment, $46,000, and Land, $21,000 including Accumulated​ Depreciation, $18,000.

This amounts to

= $46,000 + $21,000 - $18,000

= $49,000