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 | |||
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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