USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6) QUESTIONS: The following is

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USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6) QUESTIONS:
The following is a December 31, 2016, post-closing trial balance for Excell Company:

Additional Information:

1. The cash account includes $22,000 set aside in a legally restricted fund to pay bonds payable that mature in 2024, a $15,000 cash surrender value of a life insurance policy on the company's CEO, and $2,000 in petty cash.

2. The accounts receivable balance consists of the following:
      a. Amounts owed by customers with debit balances $ 227,600
      b. Customer accounts with credit balances 10,500
      c. Allowance for uncollectible accounts - trade customers (9,400)
      d. Non-trade note receivable due in three equal payments on June 25 over the next 3 years 64,500
      e. Interest receivable on note due in nine months         7,800
  Total $ 280,000

3. The prepaid expenses includes $18,000 that will be consumed during 2017 and $14,000 that will be consumed during 2018.

4. The investments account is classified as Available for Sale Securities and includes an investment of $25,000 in bonds that mature July 1, 2017. Of the remaining investments balance, management intends to hold for at least the next three years. All investments in the portfolio have already been marked-to-market and are reported at Fair Value.

5. The land account includes land which cost $75,000 that the company purchased for speculative purposes and is currently held for sale. The remaining $100,000 is the cost of land on which the company's office building resides. The equipment account includes idle machinery with a book value of $45,000.

6. The unearned revenue represents customer prepayments for magazine subscriptions. Subscriptions are for five years and will be earned evenly over each of the years beginning January 1, 2017.

7. The notes payable account consists of the following:
          a. a $50,000 note due in six months.
          b. a $100,000 bond due in eight years.
          c. a $150,000 note due in six annual installments of $25,000 each, with the next installment due Nov. 1, 2017.
          *Interest on all notes has been properly accrued and is included in accrued expenses.

Required: After all corrections have been made, determine the correct amount of Current Assets:

Account Title Debits Credits Cash $ 83,000 Accounts Receivable (net of Allowance) $280,000 Prepaid Expenses $ 32,000 Investments $ 65,000 Land $175,000 Buildings (net) $160,000 Equipment (net) $145,000 Accounts payable $ 73,000 Accrued expenses payable $ 45,000 Unearned Revenue $150,000 Notes payable $300,000 Common Stock $200,000 Retained Earnings $172,000      TOTALS $940,000 $940,000

Explanation / Answer

Account Title Debits Adjustments Net Current Assets to be rcorded Calculation Cash $ 83,000 $         (37,000.00) $    46,000.00 $ 22000 deducted from cash because it is set aside for long term bond repayment so it can be considered long term asset. Surrender value of policy is not a current asset so, $ 15,000 shall be deducted Accounts Receivable (net of Allowance) $280,000 $         (23,100.00) $ 256,900.00 Customer with credit balance shall be added back because they are current liablities. Allowance for uncollectible shall also be added. From balance of non trade not receivabel on 1/3rd represent current asset so remaining amount shall be deducted. Prepaid Expenses $ 32,000 $         (14,000.00) $    14,000.00 prepaid expense of year 2018 is long term asset shall be deducted Investments $    25,000.00 only investment classified as available for shall is current asset Land $    75,000.00 Land for speculative purpose is included in current asset Net current asset $ 416,900.00

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