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13 July, 06:05

anson Corporation Co.'s trial balance included the following account balances at December 31, 2018: Accounts receivable $12,000 Inventories $40,000 Patent $12,000 Investments $30,000 Prepaid insurance $6,000 Note receivable, due 2021 $50,000 Investments consist of treasury bills that were purchased in November, 2018 and mature in January, 2019. Prepaid insurance is for two years. What amount should be included in the current asset section of Janson's December 31, 2018, balance sheet?

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  1. 13 July, 09:01
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    Current Assets = $85,000

    Explanation:

    Anson Corporation

    Balance Sheet (Partial)

    As at December 31, 2018

    Assets

    Current Assets:

    Accounts receivable $12,000

    Inventories 40,000

    Treasury Bill 30,000

    Prepaid insurance 3,000

    Total current assets $85,000

    Prepaid insurance $6,000/2 = $3,000 is for current years. Therefore, $3,000 is a current assets. Since treasury bill is an investment and for 3 months, it is a current assets.
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