Listed below are year-end account balances (in $millions) taken from the records of Symphony Stores. Debit Credit
Accounts receivable-trade 699
Building and equipment 930
Cash-checking 40
Interest receivable 34
Inventory 25
Land 166
Notes receivable (long-term) 484
Petty cash fund 7
Prepaid rent 28
Supplies 8
Trademark 49
Accounts payable-trade 614
Accumulated depreciation 75
Additional paid-in capital 485
Allowance for uncollectible accounts 18
Cash dividends payable 29
Common stock, at par 11
Income tax payable 60
Notes payable (long-term) 826
Retained earnings 324
Deferred revenues 28
TOTALS 2,470 2,470
What would Symphony report as total assets?
a) $1,551 millions.
b) $2,395 millions.
c) $2,470 millions.
d) $2,377 millions.

d) $2,377 millions.

Explanation:

Total of Assets comprises the sum of Current Assets and Non Current Assets. Current Assets are assets of a short term nature not exceeding 12 months and Non - Current Assets are assets of a long term nature, exceeding 12 months.

In the Balance Sheet, some assets are presented at their net amounts. Property Plant and Equipment is presented net of accumulated depreciation. Trade Receivables are presented net of allowances for uncollectable amounts.

Therefore,

Total Assets Calculation :

                                                                       $ millions

Accounts receivable-trade                              699

Building and equipment                                  930

Cash-checking                                                   40

Interest receivable                                             34

Inventory                                                            25

Land                                                                  166

Notes receivable (long-term)                         484

Petty cash fund                                                   7

Prepaid rent                                                      28

Supplies                                                              8

Trademark                                                        49

Accumulated depreciation                             (75)

Allowance for uncollectible accounts            (18)

Total Assets                                                  2,377