Question

Use the following data to determine the total dollar amount of assets to be classified as current assets.Koonce Office SuppliesBalance SheetDecember 31, 2014Cash$ 130,000Accounts payable$ 140,000Accounts receivable100,000Salaries and wages payable20,000Inventory110,000Mortgage payable160,000Prepaid insurance60,000Total liabilities$320,000Stock investments170,000Land180,000Buildings$210,000Common stock$240,000Less: AccumulatedRetained earnings500,000depreciation(40,000)170,000Total stockholders' equity$740,000Trademarks140,000Total liabilities andTotal assets$1,060,000stockholders' equity$1,060,000A)$570,000B)$400,000C)$340,000D)$290,000

Answer 1

A)$570,000

Step-by-step explanation:

Balance Sheet 2014

Cash $130,000

Accounts Receivable $100,000

Prepaid Insurances $60,000

Stock Investments $170,000

Inventory $110,000

TOTAL CURRENT ASSETS $570,000

Building $210,000

Depreciation -$40,000

Intangible Assets $140,000

Land $180,000

TOTAL ASSETS $1,060,000

Accounts Payable $140,000

Wages Payable $20,000

Mortgage Payable $160,000

TOTAL LIABILITIES $320,000

Common Stock $240,000

Retained Earnings $500,000

TOTAL EQUITY $740,000

TOTAL EQUITY + LIABILITIES $1,060,000