An examination of the accounting records for the Hutton Corporation indicates that all receivables are being recorded in a single account entitled Receivables. An analysis of the account reveals the following:
Accounts receivable (trade) â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦.$15,500
Accounts receivable (officers) â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦. 3,600
Common stock subscriptions receivable (current) â€¦â€¦â€¦… 12,000
Advances to employees â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦ 1,800
Notes receivable (trade), due in 3 years â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦ 6,000
Deposit to guarantee contract performance â€¦â€¦â€¦â€¦â€¦â€¦.. 5,000
Utility deposit â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦â€¦ 500
1. Prepare a journal entry to separate the preceding items into their proper accounts.
2. How would each of the preceding items normally be reflected on Huttonâ€™s balance sheet? Get FInance Help Today
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