Question

Metlock, Inc. shows a balance of $535,120 in the Accounts Receivable account on December 31, 2020. The balance consists of the following:

Instalment accounts due in 2021		$94,500
Instalment accounts due after 2021		73,000
Overpayments to creditors		12,560
Due from regular customers, of which $40,000 represents accounts pledged as security for a bank loan		175,000
Advances to employees		70,060
Advance to subsidiary company (made in 2015)		110,000
		$535,120

Show how the information above should be presented on the statement of financial position of Metlock, Inc. at December 31, 2020.

Answer 1

Answer
Explanation :
Metlock, Inc. Balance Sheet
As of year ended December 31, 2020
Current Assets:
Accounts Receivable:
Customer accounts	$ 1,75,000
Installment accounts due in 2021	$     94,500
Installment accounts due after Dec 31, 2021	$     73,000	$ 3,42,500
Other		$     82,620	$     4,25,120
Non-Current Assets:
Investments:
Advance to subsidiary company			$     1,10,000

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