Journal Entry to Separate Receivables An examination of the accounting records for the Hutton Corporation indicates that all receivables are being recorded in a single account entitled Receivables. An analysis of the account reveals the following:
|
Accounts receivable (trade) |
$15,500 |
|
Accounts receivable (officers) |
3,600 |
|
Common stock subscriptions receivable (current) |
12,000 |
|
Advances to employees |
1,800 |
|
Notes receivable (trade), due in 3 years |
6,000 |
|
Deposit to guarantee contract performance |
5,000 |
|
Utility deposit |
500 |
|
Total |
$44,400 |
Required
1. Prepare a journal entry to separate the preceding items into their proper accounts.
2. How would each of the preceding items normally be reflected on Hutton’s balance sheet?