Costa Co. has the following cash balances at local banks as of 12/31/2018:
$\begin{array}{lr}
\text { National Bank: } & \$ 100,000 \
\text { K\&P Bank: } & 25,000 \
\text { Insolvent Trust: } & (5,000)
\end{array}$
Required:
1. Prepare the Current Assets and Current Liabilities section of Costa's 2018 balance sheet, assuming Parker reports under U.S. GAAP.
2. Prepare the Current Assets and Current Liabilities section of Costa's 2018 balance sheet, assuming Parker reports under IFRS.

Question

Quizplus · Accepted Answer

The Answer of Costa Co. has the following cash balances at local banks as of 12/31/2018:
$\begin{array}{lr}
\text { National Bank: } & \$ 100,000 \
\text { K\&P Bank: } & 25,000 \
\text { Insolvent Trust: } & (5,000)
\end{array}$
Required:
1. Prepare the Current Assets and Current Liabilities section of Costa's 2018 balance sheet, assuming Parker reports under U.S. GAAP.
2. Prepare the Current Assets and Current Liabilities section of Costa's 2018 balance sheet, assuming Parker reports under IFRS.

Costa Co Has the Following Cash Balances at Local Banks as as of 12/31/2018