The balances of select accounts of Sandra, Inc. as of December 31, 2018 are given below: $$\begin{array} { | l | r | r | }
\hline & { \text { Debit } } & \text { Credit } \
\hline \text { Building } & \$ 130,000 & \
\hline \text { Cash } & 5,000 & \
\hline \text { Office Supplies } & 800 & \
\hline \text { Furniture } & 5,000 & \
\hline \text { Prepaid Insurance } & 450 & \
\hline \text { Accumulated Depreciation-Furniture } & & \$ 1,000 \
\hline \text { Land } & 32,000 & \
\hline \text { Accumulated Depreciation-Building } & & 4,600 \
\hline \text { Accounts Receivable } & 2,300 & \
\hline
\end{array}$$ The insurance has been prepaid until June 30, 2019. Determine the amount of total current assets reported on the balance sheet at December 31, 2018.
A) $12,300
B) $5,800
C) $8,550
D) $6,250

Question

The balances of select accounts of Sandra, Inc. as of December 31, 2018 are given below: $$\begin{array} { | l | r | r | } 
\hline & { \text { Debit } } & \text { Credit } \
\hline \text { Building } & \$ 130,000 & \
\hline \text { Cash } & 5,000 & \
\hline \text { Office Supplies } & 800 & \
\hline \text { Furniture } & 5,000 & \
\hline \text { Prepaid Insurance } & 450 & \
\hline \text { Accumulated Depreciation-Furniture } & & \$ 1,000 \
\hline \text { Land } & 32,000 & \
\hline \text { Accumulated Depreciation-Building } & & 4,600 \
\hline \text { Accounts Receivable } & 2,300 & \
\hline
\end{array}$$ The insurance has been prepaid until June 30, 2019. Determine the amount of total current assets reported on the balance sheet at December 31, 2018.
A) $12,300
B) $5,800
C) $8,550
D) $6,250

Quizplus · Accepted Answer

Total current assets include:
- Cash: $2,900
- Accounts Receivable: $3,250
- Prepaid Insurance (portion applicable to December 31, 2018): $2,400 [(6/12) x $4,800]
- Inventory: $1500

Total current assets = $2,900 + $3,250 + $2,400 + $1,500 = $8,550. Therefore, option C is the correct answer.

The Balances of Select Accounts of Sandra, Inc The Insurance Has Been Prepaid Until June 30, 2019