Bleak Company

Requirement a Debit Credit Requirement b

Dec-01 Accounts receivable - assigned 1,500,000 The Accounts receivable - assig

Accounts receivable 1,500,000 current asset and included in tr

Cash 1,250,000 The Notes payable - bank of 34

Service charge 50,000
Notes payable - bank 1,300,000 The company should disclose th

Cash 970,000 Accounts receivable - assigned

Sales discount 30,000 Notes payable - bank
Accounts receivable - assigned 1,000,000 Equity in signed accounts

Interest expense 13,000

Notes payable - bank 957,000
Cash 970,000
Requirement b

The Accounts receivable - assigned with a balance of 500,000 should be classified as

current asset and included in trade and other receivables

The Notes payable - bank of 343,000 should be classified and presented as current liablity

The company should disclose the equity in assigned account as follows:

Accounts receivable - assigned 500,000

Notes payable - bank -343,000
Equity in signed accounts 157,000