Balance Sheet Practice Problem Flashcards
Deferred revenue of $180,000 is included as a current liability even though only two-thirds is expected to be earned in 2025
Current liability (Deferred revenue) $120,000
Long term liability (Deferred revenue) $60,000
Prepaid expenses include $120,000 paid on December 31, 2024 for two years of rent on the building that houses both the administrative offices and the manufacturing facility
Prepaid Expenses $148,000
Current Asset (PP Rent) 88,000
Other Asset (PP Rent) 60,000
Investment include $30,000 in Treasury bills purchased on November 30, 2024. The bills mature on January 30th, 2025. The remaining $110,000 is an investment in equity securities that the company intends to sell in the next year
Investments $140,000
Current Assets (Treasury Bills) $30,000
Current Assets (Equity Securities) $110,000
