Question

The following is a list of account titles and amounts (in thousands) as reported at June 30, 2020, by Darian's Dirt Bikes, Inc., a retail distributor of motorcycles:

Buildings and Improvements $297
Prepaids and Other Current Assets 125
Allowance for Doubtful Accounts 20
Other Non-current Assets 35
Cash and Cash Equivalents 64
Accounts Receivable 335
Goodwill $ 84
Machinery and Equipment 651
Accumulated Depreciation 426
Inventories 745
Other Intangibles 105
Land and Improvements 28

Prepare the asset section of a classified balance sheet for Darian's Dirt Bikes, Inc. using ASPE. (Enter all amounts in thousands of dollars. Amounts to be deducted should be indicated by a minus sign.)

Answer 1

The asset section of the classified balance sheet for Darian's Dirt Bikes, Inc. under ASPE has been organized into current and non-current assets, adjusted for contra accounts, with total assets amounting to $2,023,000.

Step-by-step explanation:

To prepare the asset section of a classified balance sheet for Darian's Dirt Bikes, Inc. using Accounting Standards for Private Enterprises (ASPE), we must organize the provided amounts into current and non-current (long-term) assets and adjust for any contra asset accounts. Below is the asset section:

Assets

Current Assets:

• Cash and Cash Equivalents: $64,000
• Accounts Receivable: $335,000
• Less: Allowance for Doubtful Accounts: -$20,000
• Inventories: $745,000
• Prepaids and Other Current Assets: $125,000

Total Current Assets: $1,249,000

Non-current Assets:

• Land and Improvements: $28,000
• Buildings and Improvements: $297,000
• Machinery and Equipment: $651,000
• Less: Accumulated Depreciation: -$426,000
• Other Non-current Assets: $35,000
• Goodwill: $84,000
• Other Intangibles: $105,000

Total Non-current Assets: $774,000

Total Assets:

$2,023,000