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# Calcualation of net income and current assets

1 A list of financial statement items for Luxmann Company includes the following:

Accounts receivable \$14,500 Prepaid insurance \$3,400
Cash \$18,400 Supplies \$1,800
Short-term investments \$6,200
Prepare the current assets section of the balance sheet listing the items in the proper sequence.

2. Before month-end adjustments are made, the February 28 trial balance of Bose's Enterprise contains revenue of \$11,000 and expenses of \$7,600. Adjustments are necessary for the following items:

? Depreciation for February is \$1,200.
? Revenue earned but not yet billed is \$2,800.
? Accrued interest expense is \$800.
? Revenue collected in advance that is now earned is \$2,500.
? Portion of prepaid insurance expired during February is \$500.

Instructions
Calculate the correct net income for Bose's Enterprise for February 3.

#### Solution Summary

The solution contains the answers for two questions: 1. calculation of net income 2. Properly arranging the items in the current asset section of the balance sheet.

\$2.19