ACCT251CA5-2Sol - Inventory of finished goods. Inventory of...

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CA 5-2 Current Assets Current Liabilities Interest accrued on U.S. government securities. Preferred cash dividend, payable Nov. 1, 2010. Notes receivable. Federal income taxes payable. Petty cash fund. Customers’ advances (on contracts to be U.S. government securities. completed next year). Cash in bank. Premium on bonds redeemable in 2010. Inventory of operating parts and supplies. Officers’ 2010 bonus accrued. Inventory of raw materials. Accrued payroll. Accounts receivable. Notes payable. U.S. government contracts. Accrued interest on bonds. Regular (less allowance for doubtful accounts). Accounts payable. Accrued interest on notes payable. Installments—due next year. 8% First mortgage bonds to be redeemed in 2010.
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Unformatted text preview: Inventory of finished goods. Inventory of work in process. Borderline cases that have been classified on the basis of assumptions are: 1. Notes receivable are assumed to be collectible within one year or the operating cycle. 2. U.S. government securities are assumed to be a temporary investment of current funds. 3. Accounts receivable—government contracts are assumed to be collectible within one year or the operating cycle. 4. Notes payable are assumed to be due within one year or the operating cycle. ( Note to instructor: Allowance for doubtful accounts receivable is not a current asset. It, however, would appear in the current asset section.)...
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This note was uploaded on 11/08/2009 for the course ACCTG 480 taught by Professor Wells,w during the Spring '08 term at University of Washington.

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