Question

Exercise 7-3 Blossom Company shows a balance of $202,600 in the Accounts Receivable account on December 31, 2017. The balance consists of the following. Installment accounts due in 2018 $29,500 Installment accounts due after 2018 37,000 Overpayments to vendors 3,460 Due from regular customers, of which $39,510 represents accounts pledged as security for a bank loan 80,300 Advances to employees 2,350 Advance to subsidiary company (due in 2018) 89,500 Illustrate how the information above should be shown on the balance sheet of Blossom Company on December 31, 2017. Assume that installment accounts collectible due after December 31, 2018 (Customers) are collectible within the operating cycle of the business. BLOSSOM COMPANY Balance Sheet (Partial) $ $ $

Answer 1

EXTRACT OF BALANCE SHEET
Current Asset
Accounts receivable
Trade/Customers Accounts (of which accounts in the amount of $39510 have been pledged as security for a bank loan	$    80,300.00
Installment accounts due in 2018	$    29,500.00
Other Current Assets
Overpayments to vendors	$      3,460.00
Advances to employees	$      2,350.00
Total	$ 115,610.00
Non Current Assets
Investment
Advance to subsidiary company (due in 2018)	$    89,500.00
Installment accounts collectible due after December 2018	$    37,000.00
Total	$ 126,500.00