Journal Entry to Separate Receivables
Response to the following problem:
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?