Question

Presented below is the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2018. Account Title Debits Credits Cash $ 32,000 Accounts receivable 154,000 Raw materials 36,000 Note receivable 112,000 Interest receivable 15,000 Interest payable $ 17,000 Marketable securities 44,000 Land 62,000 Buildings 1,540,000 Accumulated depreciation—buildings 632,000 Work in process 54,000 Finished goods 101,000 Equipment 324,000 Accumulated depreciation—equipment 142,000 Patent (net of amortization) 132,000 Prepaid rent (for the next two years) 72,000 Deferred revenue 48,000 Accounts payable 192,000 Note payable 520,000 Cash restricted for payment of note payable 92,000 Allowance for uncollectible accounts 25,000 Sales revenue 1,040,000 Cost of goods sold 462,000 Rent expense 40,000 Additional information: The note receivable, along with any accrued interest, is due on November 22, 2019. The note payable is due in 2022. Interest is payable annually. The marketable securities consist of treasury bills, all of which mature in the next year. Deferred revenue will be recognized as revenue equally over the next two years.

Answer 1