Question

Maxim Company had the following partial listing of accounts and balances at year-end: Cash, $7,000; Accounts Receivable, $6,000; Accounts Payable, $15,000; Equipment, $23,000; Inventories, $5,000; Supplies, $1,000; Land, $75,000; Unearned Service Revenue, $13,000; and Prepaid Rent, $4,000. The total current assets for Maxim Company is:

$19,000.
$23,000.
$149,000.
$98,000.

Answer 1

$23,000

Step-by-step explanation:

The computation of the total current assets is shown below:

= Cash + Accounts Receivable + Inventories + Supplies + Prepaid Rent

= $7,000 + $6,000 + $5,000 + $1,000 + $4,000

= $23,000

These above assets are classified as current assets which is to be liquidated into cash within one year

The rest items are shown as the current liabilities and the fixed assets. Hence, ignored it