Question

In: Accounting

Henderson Corporation’s trial balance for July 31, the end of its fiscal year, included the following...

  1. Henderson Corporation’s trial balance for July 31, the end of its fiscal year, included the following accounts

Accounts Receivable

$21,000P

Inventories

57,000

Copyright

18,000

Prepaid insurance

   6,000

Note receivable, due in two years

74,000

Cash in Bank

     4,500

Investments are Treasury Bills that were purchased in May and mature on August 15. Prepaid Insurance is a three-year policy that was purchased on July 31.

The amount that should e classified as current assets in the July 31 balance sheet is _______.

  1. $129,500
  2. $125,500
  3. $82,000
  4. $199,500

Please show step by step how to work this problem.

Solutions

Expert Solution

Solution:

Given that the following information about the Henderson Corporation’s trial balance for July 31, the end of its fiscal year.

In the given problem there is no information about investments...but Investments are Treasury Bills that were purchased in May and mature on August 15 is given....

Total current assets = Accounts receivable + Inventories + Investments + Prepaid insurance + Cash in bank.

As per given problem total current assets= $88,500...

No option has the above amount. So please provide information about investments.

ekkarill92 answered 2 years ago
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