Current liabilities comprise 50000 for long-term debt that

Reference no: EM13477169

Question 1: You are the independent accountant assigned to the audit of Neophyte Company. The company's accountant, a graduate of Rival State University, has prepared financial statements that contained the following questionable items:

a. The balance sheet reports land at $100,000. Included in this amount is a piece of property held for speculation at a cost of $30,000.

b. Current liabilities include $50,000 for long-term debt that comes due in 3 months. The company has received a suitable firm commitment to refinance the debt for 5 years and intends to do so.

c. Investments in marketable securities include $20,000 in short-term, high-grade commercial paper which is a cash equivalent.

Please discuss how the above items should be classified and accounted for.

Reference no: EM13477169

Questions Cloud

Cmpare the three basic types of locations for businesses : compare and contrast the three basic types of locations for businesses. using examples evaluate when a particular type

A-pick a company of your choice it may be existing business : a-pick a company of your choice it might be an existing business or even a businesswhich youare thinking of opening it

However the net method is theoretically more sound most : although the net method is theoretically more sound most companies use the gross method of accounting for cash

Compare the sole proprietorship a partnership and : compare and contrast a sole proprietorship a partnership and a corporation. provide examples of where you would use

Current liabilities comprise 50000 for long-term debt that : question 1 you are the independent accountant assigned to the audit of neophyte company. the companys accountant a

Tom then refuses to pay bob what recourse does bob have to : tom tells bob that he will pay bob 5000 to put a cherry bomb in his gas tank so that tom can collect money from the

Sales for the year totaled 270 units leaving 10 units on : fulbright corp. uses the periodic inventory system. during its first year of operation fulbright made the following

Promotion is one variable of marketing mix sellers : promotion is one variable of the marketing mix. sellers communicate information about their products and services in

Is signature from one of the companys a necessary part of : your company inc. wants to do business with my company llc. because our companies are both savvy they would like to

User Account

All Pages