Use the Information in the Adjusted Trial Balance Presented Below

question 227

Multiple Choice

Use the information in the adjusted trial balance presented below to calculate current assets for Taron Company:
$\begin{array}{lrr}\text {Account Title}&\text {Dr.}&\text {Cr} \\\text { Cash } & \$ 23,000 \\\text { Accounts receivable } & 16,000 \\\text { Prepaid insurance } & 6,600 \\\text { Equipment } & 100,000\\\text { Accumulated depreciation-Equipment } & & \$ 5,000 \\\text { Land } & 95,000 & \\\text { Accounts payable } & & 17,000 \\\text { Interest payable } & & 2,400 \\\text { Unearned revenue } & & 5,000 \\\text { Long-term notes payable } & & 30,000 \\\text { Retained earnings } & & 136,200 \\\text { Totals } & \$ 240,600 & \$ 240,600\end{array}$

• A) $21,200.
• B) $45,600.
• C) $24,400.
• D) $95,600.
• E) $41,200.

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Definitions:

FOB Shipping Point

A term indicating that the buyer takes responsibility for goods once they are shipped, including paying for shipping costs and bearing the risk of loss.

Prepaid Freight

Costs paid in advance for the transportation of goods, which is often recorded as a prepaid expense on the balance sheet.

Sales Invoice

A document issued by a seller to a buyer, recording a transaction and requesting payment for the sale of goods or services.

FOB Destination

A shipping term indicating that the seller retains ownership and is responsible for the goods until they are delivered and the buyer's site.