Question

Listed here are certain accounts of Jenkins Company at the end of 2016: Account Debit (Credit) Land $ 12,000 Prepaid Insurance 1,530 Cash on Hand 1,120 Notes Receivable (due 2016) 4,300 Cash in Bank 5,400 Allowance for Doubtful Accounts ( 1,100) Marketable Securities (Short-Term) 3,380 Accumulated Depreciation ( 8,700) Accounts Receivable 15,600 Office Supplies 970 Buildings 27,200 Inventory 19,700
Required: Prepare the current asset section of Jenkins' balance sheet at the end of 2016. JENKINS COMPANY Current Asset Section of Balance Sheet December 31, 2016

Answer 1

Answer:

JENKINS COMPANY

Current Asset Section of Balance Sheet

As on December 31, 2016

Cash on Hand                                               $1,120

Cash in Bank                                                 $5,400

Notes Receivable (due 2016)                       $4,300  

Accounts Receivable                    $15,600

Allowance for Doubtful Accounts ($1,100)

Net Account receivable                                $14,500

Marketable Securities (Short-Term)             $3,380

Prepaid Insurance                                         $1,530

Office Supplies                                              $970

Inventory                                                        $19,700

Total Current Asset                                       $50,900

Explanation:

All the assets that are in cash or expected to be converted into cash within next one year are classified as Current Asset e.g cash, inventory etc.

Allowance for Doubtful Accounts is a contra account receivables account, which needs to be deducted from the account receivable value and net accounts receivable should be reported.

The Following accounts are non current accounts, they belong to Fixed assets / non current assets and Liabilities.

Land $ 12,000

Accumulated Depreciation ( 8,700)

Buildings 27,200