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Chapter 5: 1 (page 238)

(L03) Harding Corporation has the following accounts included in its December 31, 2017, trial balance: Accounts Receivable \(110,000, Inventory \)290,000, Allowance for Doubtful Accounts \(8,000, Patents \)72,000, Prepaid Insurance \(9,500, Accounts Payable \)77,000, and Cash $30,000. Prepare the current assets section of the balance sheet, listing the accounts in proper sequence.

Short Answer

Expert verified

Current assets of the business entity total$431,500.

Step by step solution

01

Definition of Current Assets

Current assets of the business entity can be defined as the resources that will provide monetary benefits to the business entity within one year. It includes receivables, cash, and inventory.

02

Current asset section

Particular

Amount $

Amount $

Account receivables

$110,000

Less: Allowance for doubtful accounts

(8,000)

$102,000

Inventory

290,000

Prepaid insurance

9,500

Cash

30,000

Total current assets

$431,500

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