Baloon-E-Tunes -Refer to Baloon-E-Tunes

question 200

Essay

Baloon-E-Tunes

$\begin{array}{l}\begin{array}{ll}\text { Retained Earnings } & \$ 370,000 \\\text { Accumulated Depreciation } & 130,000 \\\text { Income Taxes Payable } & 240,000 \\\text { Plant } & 480,000 \\\text { Cash } & 110,000 \\\text { Accounts Receivable } & 350,000 \\\text { Common Stock } & 600,000\end{array}\begin{array}{ll}\text { Notes Payable (due in } 6 \text { years) } & \$ 120,000 \\\text { Salaries Payable } & 10,000 \\\text { Supplies } & 20,000 \\\text { AccountsPayable } & 360,000 \\\text { Inventory } & 330,000 \\\text { Land } & 500,000 \\\text { Prepaid Insurance } & 40,000\end{array}\end{array}$
-Refer to Baloon-E-Tunes.Prepare the long-term asset section of the balance sheet at December 31,2013.You may omit the heading.Why are these amounts classified as "long-term"?

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Definitions:

Annually Compounded Rate

The interest rate calculated once per year, taking into account the effect of compounding over that period.

Bank Balance

The total amount of funds in a bank account at a given moment.

Deposited

Placing money into a financial account or institution for safekeeping or to earn interest.

IRA

Individual Retirement Account, a saving account with tax advantages that individuals can use to save and invest long-term.