Question

USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT (6) QUESTIONS:
The following is a December 31, 2019, post-closing trial balance for Desert Company:

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		$ 45,000
Unearned Revenue		$150,000
Notes Payable		$300,000
Common Stock		$200,000
Retained Earnings		$172,000
TOTALS	$940,000	$940,000

Additional Information:

1. The cash account includes $15,000 set aside in a legally restricted fund to pay bonds payable that mature in 2027 and a $13,000 cash surrender value of a life insurance policy on the company's CEO.

2. The accounts receivable balance consists of the following:
      a. Amounts owed by customers with debit balances $ 235,000
      b. Customer accounts with credit balances 10,000
      c. Allowance for uncollectible accounts - trade customers (15,000)
      d. Non-trade note receivable due in three years 65,000
      e. Interest receivable on note due in four months     5,000
  Total $280,000

3. 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.

4. The investments account is classified as Available for Sale Securities and includes an investment of $25,000 in bonds that mature July 1, 2020. 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 unearned revenue represents customer prepayments for magazine subscriptions. Subscriptions are for three years and will be earned evenly over each of the years beginning January 1, 2020.

6. The notes payable account consists of the following:
          a. a $50,000 note due in six months.
          b. a $100,000 bond due in six years.
          c. a $150,000 note due in three annual installments of $50,000 each, with the next installment due Nov. 1, 2020.
          *Interest on all notes has been properly accrued and is included in accrued expenses.

Required:

Using this information, determine the amount of Current Assets, after all adjustments and corrections have been made

Using the information in #1 above, determine Total Long-Term Investments after all adjustments and corrections have been made

Using the information in #1 above, determine Total PP&E (net) after all adjustments and corrections have been made:

Using the information in #1 above, determine Total Other Assets after all adjustments and corrections have been made:

Using the information in #1 above, determine Total Current Liabilities after all adjustments and corrections have been made:

Using the information in #1 above, determine Total Long-Term Liabilities after all corrections have been made:

Answer 1

PAGE Current Assets - Cash $68,000 Net Alc Rec. $225,000 land Held for Sale $ 75,000 Prepaid Expenses $32000 Inv. Available for sale & $25,000 Total Current Assets a $425000 Total long-term Investments Long term Investments $40.000 I c) Total PPd E (Net) land a $100000 Building & 16000o Eauipment: $ 145000 Total PP & G 4 05000 $405,ovo

DATE PAGE D Toral other Assets Restricted Casha $15,000 Non-Trade Notel Rec 2 & 65ooo. Total other Assets. $80.000 @ Total Current liabilities Notes Payable a & loupoo Unearned Revenue & Sonoo Wstomer with (r. Balance $10000 Accounts payable 2 & 73000 Accrued Expenses & 45000 Total Current Assets a 278000 4 Total long term liabilities . - Unearned Revenue long term Notes payable $ 100poo $ 200,000 Total long-term habilities $300,000

Cash = $83000 Lens Restricted Cousha & 15000 Net cough value 468000 - Werreut Assen 2 Accounts Recievable $280000 - Cash Amount owned by Customeus 2 235000 - Add Int rec on Notes 2 5000 less Allowance for une Alca (15000 Correud Assen Net Account Recle vasle 2 $225000 Non-Trade Note recievesle due in 3 yrs $65000 $1000o Customer with Credit Balances will be added in Accounts Payable. 6 Land 2 / 75000 jous Held for sale a 75000 Cerreut Assets 10000 Equipment 2 $145000 Ceaupment Held as Idle will one remain a part of long term assers as the same is not Heid-for-sale.

O, DATE PAGE Investments $65000 14 1 Available for sale of Seventiesz $25000CA - Longterm Investments $40,000

PAGE I nearned Revenue $150,000 Due in Next year. $50,000 > Current Celso Dove after Next years $100,000 6 Notes Puyable ) $300,000 Due in next year a) Dur in six months $50000 c) Due instalment in Nov, 20200 $50000 Current liabilities & $100,000 Due after Next years 6) Bond clue in 6yrs c) Inst, after 2020 £100,000 $100,000 $ 200,000