An examination of Hutton Corporation’s accounting records 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
Interest receivable, due in 3 months .......... 675
Advances to employees .............. 1,800
Notes receivable (trade), due in 3 years ........ 9,000
Deposit to guarantee contract performance ...... 5,000
Utility deposit ................. 500
Total ......................$36,075
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 (current or noncurrent; trade or nontrade receivable) on Hutton’s balance sheet?