Exercise 3-6 (Algo) Balance sheet; Current versus long-term classification [LO3-2, 3-3]

Presented below are the ending balances of accounts for the Kansas Instruments Corporation at December 31, 2024.

Account TitleDebitsCreditsCash$ 32,000Accounts receivable154,000Raw materials36,000Notes receivable112,000Interest receivable15,000Interest payable$ 17,000Investment in debt securities44,000Land62,000Buildings1,540,000Accumulated depreciationbuildings632,000Work in process54,000Finished goods101,000Equipment324,000Accumulated depreciationequipment142,000Patent (net)132,000Prepaid rent (for the next two years)72,000Deferred revenue48,000Accounts payable192,000Notes payable520,000Restricted cash (for payment of notes payable)92,000Allowance for uncollectible accounts25,000Sales revenue1,040,000Cost of goods sold462,000Rent expense40,000

Additional Information:

1. The notes receivable, along with any interest receivable, are due on November 22, 2025.
2. The notes payable are due in 2028. Interest is payable annually.
3. The investment in debt securities consist of treasury bills, all of which mature next year.
4. Deferred revenue will be recognized as revenue equally over the next two years.