Q3BE
Question
BE5-3 (L03) Included in Outkast Company’s December 31, 2017, trial balance are the following accounts: Prepaid Rent \(5,200, Debt Investments (to be held to maturity until 2020) \)56,000, Unearned Fees \(17,000, Land (held for investment) \)39,000, and Notes Receivable (long-term) $42,000. Prepare the long-term investments section of the balance sheet.
Step-by-Step Solution
Verified Answer
The long-term investment of the business entity totals $95,000.
1Step 1: Long-Term Investment
The investment held by the individual or the business entity for a period exceeding one year is known as a long-term investment. Such assets are held for generating capital gains in the future period.
2Step 2: Total Long-Term investment
Particular | Amount $ |
Investment | $56,000 |
Land | $39,000 |
Total long-term investment | $95,000 |
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