Introduction
|
Concepts
|
Exercises
|
Resolution
|
Case
|
Discussion
Part 4
1.
The following are CanGo account balances as of December 31, 2001, relating to subscriptions, rent, and insurance. Please use these accounts to prepare partial Current Assets and Current Liabilities sections of CanGo's Balance Sheet (also called the Statement of Financial Position).
Accounts Receivable
$27,000,000
Cash
15,000,000
Insurance Expense
60,000
Prepaid Insurance
72,000
Prepaid Rent
24,000
Rent Expense
48,000
Rent Payable
4,000
Subscription Revenue
250,000
Unearned Subscription Revenue
2,750,000
a.
Current Assets
Current Liabilities
Cash
$15,000,000
Rent Payable
$4,000
Accounts Receivable
27,000,000
Unearned Subscription Revenue
2,750,000
Subscription Revenue
250,000
Prepaid Insurance
72,000
Total Current Assets
$42,322,000
Total Current Liabilities
$2,754,000
b.
Current Assets
Current Liabilities
Cash
$15,000,000
Rent Expense
$48,000
Accounts Receivable
27,000,000
Unearned Subscription Revenue
2,750,000
Prepaid Rent
24,000
Prepaid Insurance
72,000
Total Current Assets
$42,096,000
Total Current Liabilities
$2,798,000
c.
Current Assets
Current Liabilities
Cash
$15,000,000
Rent Payable
$4,000
Accounts Receivable
27,000,000
Unearned Subscription Revenue
2,750,000
Prepaid Rent
24,000
Prepaid Insurance
72,000
Total Current Assets
$42,096,000
Total Current Liabilities
$2,754,000
page 9 of 13 | go to page:
1
2
3
4
5
6
7
8
9
10
11
12
13
© 2002 by Prentice-Hall, Inc.
