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Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021. Account Title Debits 36,000 207,000 42,000 150, 000 8,000 Credits Cash and cash equivalents Accounts receivable Raw materials inventory Notes receivable Interest receivable Interest payable Investments 13,000 45,000 130, 000 1,560, 000 Land Buildings Accumulated depreciation-buildings 770, 000

Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021. Account Title Debits 36,000 207,000 42,000 150, 000 8,000 Credits Cash and cash equivalents Accounts receivable Raw materials inventory Notes receivable Interest receivable Interest payable Investments 13,000 45,000 130, 000 1,560, 000 Land Buildings Accumulated depreciation-buildings 770, 000

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 12GI: Consider each of the following independent situations. Should a company report the goods in its...
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Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021. Account Title Debits 36,000 207,000 42,000 150, 000 8,000 Credits Cash and cash equivalents Accounts receivable Raw materials inventory Notes receivable Interest receivable Interest payable Investments Land Buildings Accumulated depreciation-buildings Work in process inventory Finished goods inventory Equipment Accumulated depreciation- equipment Franchise (net of amortization) Prepaid insurance (for the next year) Deferred revenue Accounts payable Notes payable Salaries payable Allowance for uncollectible accounts Sales reyenue 13,000 45,000 130,000 1,560,000 770, 000 44,000 95,000 430,000 260,000 1,320, 000 66,000 54, 000 300,000 560,000 12,000 30,000 8,500, 000 Cost of goods sold Salaries expense 530,000 54,000
Transcribed Image Text:Presented below is a partial trial balance for the Messenger Corporation at December 31, 2021. Account Title Debits 36,000 207,000 42,000 150, 000 8,000 Credits Cash and cash equivalents Accounts receivable Raw materials inventory Notes receivable Interest receivable Interest payable Investments Land Buildings Accumulated depreciation-buildings Work in process inventory Finished goods inventory Equipment Accumulated depreciation- equipment Franchise (net of amortization) Prepaid insurance (for the next year) Deferred revenue Accounts payable Notes payable Salaries payable Allowance for uncollectible accounts Sales reyenue 13,000 45,000 130,000 1,560,000 770, 000 44,000 95,000 430,000 260,000 1,320, 000 66,000 54, 000 300,000 560,000 12,000 30,000 8,500, 000 Cost of goods sold Salaries expense 530,000 54,000
Notes payable Salaries payable Allowance for uncollectible accounts Sales revenue Cost of goods sold Salaries expense 560, 000 12,000 30, 000 8,500, 000 530,000 54, 000 Additional information: 1. The notes receivable, along with any accrued interest, are due on November 1, 2022. 2. The notes payable are due in 2026. Interest is payable annually. 3. The investments consist of equity securities of other corporations. Management does not intend to sell any of the secutities in the next year. 4. Deferred revenue will be recognized equally over the next 18 months. Required: Determine the company's working capital at December 31, 2021. (Do not round your intermediate calculations.) Working capital
Transcribed Image Text:Notes payable Salaries payable Allowance for uncollectible accounts Sales revenue Cost of goods sold Salaries expense 560, 000 12,000 30, 000 8,500, 000 530,000 54, 000 Additional information: 1. The notes receivable, along with any accrued interest, are due on November 1, 2022. 2. The notes payable are due in 2026. Interest is payable annually. 3. The investments consist of equity securities of other corporations. Management does not intend to sell any of the secutities in the next year. 4. Deferred revenue will be recognized equally over the next 18 months. Required: Determine the company's working capital at December 31, 2021. (Do not round your intermediate calculations.) Working capital
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