Question

Question:Included in the December 31 trial balance of Rivera Company are the following assets.

Cash \( 190,000 Work in process \)200,000

Equipment (net) 1,100,000 Accounts receivable (net) 400,000

Prepaid insurance 41,000 Patents 110,000

Raw materials 335,000 Finished goods 170,000

Prepare the current assets section of the December 31 balance sheet.A

Short answer

Total current assets amount to $1,536,000 and total inventory amount to $705,000.

Step-by-step solution

Step-by-step-solutionStep1: Current Assets

Current assetsare short-term assets that last for less than a year. Theseare called short-term as the economic benefit received from these assets areless than one year.

Current asset section of balance sheet

Assets		Amount (in $)
Current Assets:
Cash		190,000
Prepaid Insurance		41,000
Work in process		200,000
Accounts receivables		400,000
inventories:
Raw Material	335,000
Work in process	200,000
Finished goods	170,000	705,000
Total Current Assets		1,536,000

Total current assets amount to $1,536,000.