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Determine the proper balance sheet presentation and amounts for the above items.

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3) You are reviewing the December 31, 2009 financial statements of Ellie's Antiques that is considering an initial public offering of their shares. The following items come to your attention;a. Included in long-term investments is ten-year U.S. Treasury bonds that mature March 31, 2010. The bonds were purchased November 20, 2009.;b. The property, plant, and equipment account is stated at cost, except that it includes a parcel of land purchased for investment purposes at a cost of $40,000. Because of rising land prices, the value of the land has been written up to $60,000. The company has an independent appraisal that attests to this amount.;c. The accounts receivable account includes $20,000 due in three years from officers and employees and a two-year, 8% note for $25,000 due from a customer. The loan enabled the customer to buy equipment needed to process materials purchased from Ellie's Antiques.;Required: Determine the proper balance sheet presentation and amounts for the above items.

 

Paper#24182 | Written in 18-Jul-2015

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