E5-7B (Current Assets Section of the Balance Sheet) Presented below are selected accounts of Coffey Company at December 31, 2014.

E5-7B (Current Assets Section of the Balance Sheet) Presented below are selected accounts of Coffey Company at December 31, 2014.

Finished Goods                                        $ 78,000   Cost of Goods Sold                $3,150,000

Revenue Received in Advance               135,000    Notes Receivable                          60,000

Bank Overdraft                                             12,000    Accounts Receivable                   241,500

Equipment                                                 379,500    Raw Materials                               310,500

Work-in-Process                                         51,000    Supplies Expense                          90,000

Cash                                                             55,500     Allowance for Doubtful Accounts 18,000

Short-term Investments in Stock             46,500     Licenses                                          27,000

Customer Advances                                 54,000     Additional Paid-in Capital            132,000

Cash Restricted for Plant Expansion    75,000     Treasury Stock                                 33,000

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 $75,900.

3. The short-term investments have a fair value of $43,500. (Assume they are trading securities.)

4. The notes receivable are due April 30, 2016, with interest receivable every April 30. The notes bear interest at 12%. (Hint: Accrue interest due on December 31, 2014.)

5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $75,000 are pledged as collateral on a bank loan.

6. Licenses are recorded net of accumulated amortization of $21,000.

7. Treasury stock is recorded at cost.

Instructions

Prepare the current assets section of Coffey Company’s December 31, 2014, balance sheet, with appropriate

disclosures.