E5-7 (Current Assets Section of the Balance Sheet) Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2014.
|
Finished Goods |
$52,000 |
Cost of Goods Sold |
$2,100,000 |
|
Unearned Revenue |
90,000 |
Notes Receivable |
40,000 |
|
Equipment |
253,000 |
Accounts Receivable |
161,000 |
|
Work in Process |
34,000 |
Raw Materials |
207,000 |
|
Cash |
37,000 |
Supplies Expense |
60,000 |
|
Equity Investments (Short-term) |
31,000 |
Allowance for Doubtful Accounts |
12,000 |
|
Customer Advances |
36,000 |
Licenses |
18,000 |
|
Cash Restricted for Plant Expansion |
50,000 |
Additional Paid-in Capital |
88,000 |
|
|
|
Treasury Stock |
22,000 |
The following additional information is available:
1. Inventories are valued at lower-of-cost-or-market using LIFO.
2. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $50,600
3. The short-term investments have a fair value of $29,000 (Assume they are trading securities.)
4. The notes receivables are due April 30, 2016, with interest receivable every April 30. The notes bear interest at 6%(Hint: Accrue interest due on December 31, 2014.)
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $50,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $14,000
7. Treasury stock is recorded at cost.
Instructions
Prepare the current assets section of Yasunari Kawabata Company’s December 31, 2014, balance sheet, with appropriate disclosures.
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