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Cone Corporation is in the process of preparing its December 31, 2018, balance sheet. There are...

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Accounting

Cone Corporation is in the process of preparing its December 31,2018, balance sheet. There are some questions as to the properclassification of the following items:

  1. $56,000 in cash restricted in a savings account to pay bondspayable. The bonds mature in 2022.
  2. Prepaid rent of $30,000, covering the period January 1, 2019,through December 31, 2020.
  3. Note payable of $212,000. The note is payable in annualinstallments of $26,000 each, with the first installment payable onMarch 1, 2019.
  4. Accrued interest payable of $18,000 related to the notepayable.
  5. Investment in marketable securities of other corporations,$92,000. Cone intends to sell one-half of the securities in2019.


Required:
Prepare a partial classified balance sheet to show how each of theabove items should be reported.

Answer & Explanation Solved by verified expert
4.0 Ratings (703 Votes)

Cone Corporation
Balance sheet (partial)
At december 31 , 2018
Amount ($)
Current assets
marketable securities(92000/2)             46,000
Prepaid rent(30000/2)             15,000
Investments
Restricted cash             56,000
Marketable securities(92000/2)             46,000
Other assets
Prepaid rent(30000/2)             15,000
Liabilties & stockholder's equity
Current liabilties
interest payable             18,000
current maturities of long term debt             26,000
Long term liabilities
Note payable(212,000-26,000)          1,86,000

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