Janson Corporation Co.'s trial balance included the following account balances at December 31, 2018: Accounts receivable $12,000 Inventories $40,000 Patent $12,000 Investments $30,000 Prepaid insurance $6,000 Note receivable, due 2021 $50,000 Investments consist of treasury bills that were purchased in November, 2018 and mature in January, 2019. Prepaid insurance is for two years. What amount should be included in the current asset section of Janson's December 31, 2018, balance sheet?

$85,000 should be included in the current asset section of Janson's December 31, 2018, balance sheet.

Explanation:

Accounts receivable    $12,000

Inventories                    $40,000

Investments                   $30,000

Prepaid insurance         $3,000

Total Current Assets     $85,000

* Patent in the right of future economic benefit so, it has not been classified as Current Asset.

$6,000 of prepaid insurance is for 2 years. The prepaid insurance of $3,000 for one year is classified as current assets.

$85,000 should be included in the current asset section of Janson's December 31, 2018, balance sheet.

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