Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021:

 Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021:

 

Investments consist of treasury bills that were purchased in November, 2021, and mature in January, 2022. The balance of prepaid insurance represents coverage over the next two years. What amount should be included in the current assets section of Janson’s December 31, 2021, balance sheet? 

Multiple Choice

$139,700.


$88,600.



$91,800.


$57,900.

Answer

$88,600.

Explanation

$12,700 + $42,000 + $30,700 + $3,200 (1/2 of prepaid insurance) = $88,600.

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The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2021, the end of its fiscal year

The trial balance for K and J Nursery, Inc., listed the following account balances at December 31, 2021, the end of its fiscal year: cash, $16,000; accounts receivable, $11,000; inventory, $25,000; equipment (net), $80,000; accounts payable, $14,000; salaries payable, $9,000; interest payable, $1,000; notes payable (due in 18 months), $30,000; common stock, $50,000.

Calculate total current assets and total current liabilities that would appear in the company's year-end balance sheet.

 

 

Determine the year-end balance in retained earnings for K and J Nursery, Inc.

 

 

 

Prepare a classified balance sheet for K and J Nursery, Inc. The equipment originally cost $140,000.

   

 

Explanation

$28,000 is the amount needed to cause total assets to equal total liabilities and shareholders' equity.
Current assets: $16,000 + $11,000 + $25,000 = $52,000
Current liabilities: $14,000 + $9,000 + $1,000 = $24,000

  

 

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