The poorly trained bookkeeper at Flowing Water Company has shown you the long-term asset section of the company’s balance sheet that he will soon distribute to stockholders. For your convenience, each item is identified with a letter. These letters will not appear in the finished document.Long-term investments:(a) Machinery, net ………………..$181,600(b) Office supplies …………………..8,710(c) Land …………………….78,000Property, plant, and equipment:(d) Patents ……………………27,000(e) Processing plant, net ……………….206,960(f) Obsolete equipment awaiting sale, net …………16,800Intangible assets:(g) Prepaid insurance (for next three years) …………21,000(h) Common stock of Flower Corporation ……………………………..83,000Other long-term assets:(i) Cash ……………………..4,722(j) Standby equipment, net (used only during peak production) …..21,000(k) Goodwill …………………….14,000(l) Investment in bonds of Beech Brothers, Inc. …………46,000Write down each of the four category headings above. After each heading, list the letters of the items you believe should be reported under that heading.View Solution:
The poorly trained bookkeeper at Flowing Water Company has shown



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