Selected accounts from Phipps Corporation’s trial balance are as follows.Phipps CorporationTrial BalanceDecember 31(Selected Accounts) DebitCreditCash$50,000 Short-Term Marketable Securities27,000 Accounts Receivable13,000 Inventories48,000 Other Current Assets10,000 Land100,000 Equipment45,000 Accumulated Depreciation-Equipment $5,000 Goodwill30,000 Other Intangible Assets15,000 Prepare the assets section of the company’s balance sheet.Phipps CorporationBalance SheetDecember 31Assets Current Assets: $Cash Property, Plant, and Equipment, Net Accounts Receivable Inventories Other Current AssetsTotal Current Assets$fill in the blank 11 Short-Term Marketable Securities Goodwill Other Intangible AssetsTotal Assets$fill in the blank 18

Answered: Selected accounts from Phipps…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 24CE

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Selected accounts from Phipps Corporation’s trial balance are as follows.

Phipps Corporation
Trial Balance
December 31
(Selected Accounts)
	Debit	Credit
Cash	$50,000
Short-Term Marketable Securities	27,000
Accounts Receivable	13,000
Inventories	48,000
Other Current Assets	10,000
Land	100,000
Equipment	45,000
Accumulated Depreciation-Equipment		$5,000
Goodwill	30,000
Other Intangible Assets	15,000

Prepare the assets section of the company’s balance sheet.

Phipps CorporationBalance SheetDecember 31

Assets
Current Assets:
	$Cash
	Property, Plant, and Equipment, Net
	Accounts Receivable
	Inventories
	Other Current Assets
Total Current Assets	$fill in the blank 11
	Short-Term Marketable Securities
	Goodwill
	Other Intangible Assets
Total Assets	$fill in the blank 18

Expert Solution

Step 1 Concept of current and non-current assets

Current assets are those that are expected to be received within 12 months from the end of the reporting period or within the operating cycle of the entity. It is pertinent to note that current assets specifically include inventory, cash and cash equivalents. Other assets that doesn't meet the criteria of current assets are non-current assets.

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