On the Basis of the Following Data Related to Assets

question 65

Essay

On the basis of the following data related to assets due within one year for Simons Co., prepare a partial balance sheet in good form at December 31. Show total current assets. $$\begin{array} { l r } \text { Cash } & 56,000 \\\text { Accounts receivable } & 325,000 \\\text { Allowance for doubtful accounts } & 25,000 \\\text { Interest receivable } & 3,000 \\\text { Supplies } & 4,000 \\\text { Inventory } & 45,000 \\\text { Other current assets } & 10,000\end{array}$$

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Definitions:

Constructive Trusts

Legal arrangements treated by a court as if they are actual trusts, when someone has wrongfully obtained or withheld property that rightfully should belong to another.

Creator

An individual or entity that brings something new into existence or is responsible for the original conception of a work or idea.

Resulting Trust

A trust that arises by implication of law when one person holds property for the benefit of another under certain circumstances, typically when the title holder is not intended to have beneficial ownership.

Contract

A legally binding agreement between two or more parties, outlining obligations and rights concerning particular terms or services.