The balances of select accounts of Sandra Company as at December 31, 2015 are given below: $$\begin{array} { | l | r | r | }
\hline & { \text { Debit } } & { \text { Credit } } \
\hline \text { Building } & \$ 120,000 & \
\hline \text { Cash } & 5,000 & \
\hline \text { Office Supplies } & 700 & \
\hline \text { Furniture } & 3,000 & \
\hline \text { Prepaid Insurance } & 450 & \
\hline \text { Accumulated Depreciation-Furniture } & & \$ 1,000 \
\hline \text { Land } & 35,000 & \
\hline \text { Accumulated Depreciation-Building } & & 4,800 \
\hline \text { Accounts Receivable } & 2,500 & \
\hline
\end{array}$$
-Refer to the table above.The insurance has been prepaid for the next half year. What are the total current assets that would be shown on the balance sheet?
A) $10,500
B) $5,700
C) $8,650
D) $6,150

Question

The balances of select accounts of Sandra Company as at December 31, 2015 are given below: $$\begin{array} { | l | r | r | } 
\hline &  { \text { Debit } } &  { \text { Credit } } \
\hline \text { Building } & \$ 120,000 & \
\hline \text { Cash } & 5,000 & \
\hline \text { Office Supplies } & 700 & \
\hline \text { Furniture } & 3,000 & \
\hline \text { Prepaid Insurance } & 450 & \
\hline \text { Accumulated Depreciation-Furniture } & & \$ 1,000 \
\hline \text { Land } & 35,000 & \
\hline \text { Accumulated Depreciation-Building } & & 4,800 \
\hline \text { Accounts Receivable } & 2,500 & \
\hline
\end{array}$$ 
-Refer to the table above.The insurance has been prepaid for the next half year. What are the total current assets that would be shown on the balance sheet?
A) $10,500
B) $5,700
C) $8,650
D) $6,150

Quizplus · Accepted Answer

To calculate the total current assets, we need to add up all the assets that can be converted into cash within a year.
Current assets = Cash + Office Supplies + Prepaid Insurance + Accounts Receivable
Current assets = $5,000 + $700 + $450 + $2,500
Current assets = $8,650

The Balances of Select Accounts of Sandra Company as at December