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

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

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

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

Expert Solution

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

ekkarill92 answered 11 months ago

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