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Blossom Company has collected the following information related to its December 31, 2022, balance sheet. Accounts receivable $14,000 Equipment $170,000 Accumulated depreciation—equipment 45,000 Inventory 58,000 Cash 6,000 Supplies 5,000 Stock investments (long-term) 1,500 Goodwill 4,000 Prepare the assets section of Blossom Company’s balance sheet. (List Current Assets in order of liquidity.)

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zainsubhani

Answer:

Current Assets:

Cash=$6000

Accounts receivable =$14,000

Inventory=$58,000

Supplies=$5000

Non Current Assets:

Equipment=$170,000

Stock investments (long-term)=$1,500

Goodwill=$4,000

Accumulated depreciation—equipment=(45,000 )      ( ) for negative

Total Assets=$213,500

Explanation:

Assets are anything which are owned by any firm.There are current assets which includes:

  • Cash and Cash equivalent
  • Account receivable
  • Prepaid Expense
  • Inventory
  • Supplies

Non Current assets are those which last more than one year. These are of two types

  1. Tangible Fixed Assets includes (building,Furniture,vehicles,Equipment and land etc)
  2. Intangible Fixed Assets (Copyrights,patents etc)

Solution:

Current Assets:

Cash=$6000

Accounts receivable =$14,000

Inventory=$58,000

Supplies=$5000

Non Current Assets:

Equipment=$170,000

Stock investments (long-term)=$1,500

Goodwill=$4,000

Accumulated depreciation—equipment=(45,000 )      ( ) for negative

Total Assets=$213,500

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