E5-7 (Current Assets Section of the Balance Sheet) Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2014.
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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.
11 years ago
