Presented below is a partial trial balance for the Messenger Corporation on December 31, 2024. Account Title Debits Credits Cash and cash equivalents 30,000 Accounts receivable 195,000 Raw materials inventory 36,000 Notes receivable 120,000 Interest receivable 4,000 Interest payable 7,000 Investments 48,000 Land 100,000 Buildings 1,500,000 Accumulated depreciation–buildings 740,000 Work in process inventory 38,000 Finished goods inventory 98,000 Equipment 400,000 Accumulated depreciation–equipment 230,000 Franchise (net of amortization) 120,000 Prepaid insurance (for the next year) 60,000 Deferred revenue 48,000 Accounts payable 240,000 Notes payable 500,000 Salaries payable 6,000 Allowance for uncollectible accounts 24,000 Sales revenue 900,000 Cost of goods sold 500,000 Salaries expense 48,000 Additional information: The notes receivable, along with any accrued interest, are due on November 1, 2025. The notes payable are due in 2029. Interest is payable annually. The investments consist of equity securities of other corporations. Management does not intend to sell any of the securities in the next year. Deferred revenue will be recognized equally over the next 18 months. Required: Determine the company’s working capital on December 31, 2024. Note: Do not round your intermediate calculations.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Account Title	Debits	Credits
Cash and cash equivalents	30,000
Accounts receivable	195,000
Raw materials inventory	36,000
Notes receivable	120,000
Interest receivable	4,000
Interest payable		7,000
Investments	48,000
Land	100,000
Buildings	1,500,000
Accumulated depreciation–buildings		740,000
Work in process inventory	38,000
Finished goods inventory	98,000
Equipment	400,000
Accumulated depreciation–equipment		230,000
Franchise (net of amortization)	120,000
Prepaid insurance (for the next year)	60,000
Deferred revenue		48,000
Accounts payable		240,000
Notes payable		500,000
Salaries payable		6,000
Allowance for uncollectible accounts		24,000
Sales revenue		900,000
Cost of goods sold	500,000
Salaries expense	48,000

Additional information:

The notes receivable, along with any accrued interest, are due on November 1, 2025.
The notes payable are due in 2029. Interest is payable annually.
The investments consist of equity securities of other corporations. Management does not intend to sell any of the securities in the next year.
Deferred revenue will be recognized equally over the next 18 months.

Required:

Determine the company’s working capital on December 31, 2024.

Note: Do not round your intermediate calculations.

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