3) Webb Corporation's trial balance for July 31, the end of its fiscal year, included the...

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Accounting

3) Webb Corporation's trial balance for July 31, the end of itsfiscal year, included the following accounts:
Accounts Receivable $35,000
Inventories 50,000 Franchise
35,000 Investments
50,000 Prepaid Insurance
5,000 Note Receivable 90,000
Cash in Bank 8,000
The investment account consists of marketable securities ofwhich management plans to sell half of by December 31. Prepaidinsurance is a two year policy that was purchased on July 31. Thenote receivable is an installment note that will be paid in threeequal installments on December 31 of each year.
The amount that should be classified as current assets in theJuly 31 balance sheet is ________.
A) $150,500
B) $153,000
C) $175,500
D) $210,500

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3.9 Ratings (679 Votes)

Ans A 150500OverviewCurrent assets include all the assets expected to be realisedthrough the standard business cycle ie can be converted to cashwithin one year from the date of See Answer

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