Below is a list of various balance sheet accounts and their balances. $\begin{array}{|l|r|r|}
\hline& {\text { Debit }}&\text { Credit } \
\hline \text { Building } & \$ 100,000 \
\hline \text { Cash } & 2,000 \
\hline \text { Supplies } & 800 \
\hline \text { Furniture } & 2,600 \
\hline \text { Prepaid insurance } & 150 \\hline \text { Accumulated depreciation-furniture } & & \$ 900 \
\hline \text { Inventory } & & \
\hline \text { Land } & 25,000 \\hline \text { Accumulated depreciation-building } & & 4,800 \
\hline \text { Accounts rec eivable } & 1,500\
\hline
\end{array}$
- What are the total long-term assets that would be shown on the balance sheet?
A) $127,600
B) $121,900
C) $128,400
D) $96,900

Question

Below is a list of various balance sheet accounts and their balances. $\begin{array}{|l|r|r|} 
\hline& {\text { Debit }}&\text { Credit } \
\hline \text { Building } & \$ 100,000 \
\hline \text { Cash } & 2,000 \
\hline \text { Supplies } & 800 \
\hline \text { Furniture } & 2,600 \
\hline \text { Prepaid insurance } & 150 \\hline \text { Accumulated depreciation-furniture } & & \$ 900 \
\hline \text { Inventory } & & \
\hline \text { Land } & 25,000 \\hline \text { Accumulated depreciation-building } & & 4,800 \
\hline \text { Accounts rec eivable } & 1,500\
\hline
\end{array}$
- What are the total long-term assets that would be shown on the balance sheet?
A) $127,600
B) $121,900
C) $128,400
D) $96,900

Quizplus · Accepted Answer

Long-term assets include Building, Land, and Furniture (after subtracting accumulated depreciation). The calculation is as follows: Building ($100,000) + Land ($25,000) + Furniture ($2,600) - Accumulated Depreciation on Furniture ($900) = $126,700. However, Accumulated Depreciation on Building ($4,800) should also be subtracted from the Building's value, not added to Furniture. So, the correct calculation is Building ($100,000 - $4,800) + Land ($25,000) = $120,200. The error in the explanation led to a miscalculation. The correct total of long-term assets, considering the correction, should include Building, Land, and potentially Furniture as a long-term asset if its use extends beyond a year, making the focus on Building and Land more accurate. However, without the inclusion of Furniture in the calculation, the options provided do not directly match the corrected calculation, indicating a mistake in the initial explanation process.

Below Is a List of Various Balance Sheet Accounts and Their