Question

Tamarisk Corporation has the following accounts included in its December 31, 2017, trial balance: Accounts Receivable $119,100, Inventory $294,700, Allowance for Doubtful Accounts $9,780, Patents $74,800, Prepaid Insurance $9,510, Accounts Payable $82,500, and Cash $34,700. Prepare the current assets section of the balance sheet. (List Current Assets in order of liquidity.)

Answer 1

Tamarisk Corporation

Balance sheet as on December 31, 2017

Current Asset

Cash $34,700.

Accounts Receivable $119,100

Inventory $294,700

Prepaid Insurance $9,510

Total Current Assets $458,010

Step-by-step explanation:

Current assets are those asset which is liquidated within one year e.g cash, inventory etc.

Following accounts are the non current assets accounts, that is why these balances are not added in the current account section.

Allowance for Doubtful Accounts $9,780

Patents $74,800

Accounts Payable $82,500