EXCEL (Current Assets Section of the Balance Sheet) Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2017.
Inventory | \(52,000 | | Cost of goods sold | 2,100,000 |
Unearned service revenue | 90,000 | | Note receivable | 40,000 |
Equipment | 253,000 | | Account receivable | 161,000 |
Inventory (Work-in-process) | 34,000 | | Inventory (raw material) | 207,000 |
Cash | 37,000 | | Supplies Expenses | 60,000 |
Debt investment (Short-term) | 31,000 | | Allowance for doubtful accounts | 12,000 |
Customer advances | 36,000 | | License | 18,000 |
Restricted cash for plant expansion | 50,000 | | Additional paid-in-capital | 88,000 |
| | | Treasury stock | 22,000 |
The following additional information is available.
1. Inventories are valued at lower-of-cost or market using LIFO.
2. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is \)50,600.
3. The short-term investments have a fair value of \(29,000. (Assume they are trading securities.)
4. The notes receivable are due April 30, 2019, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2017.)
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of \)50,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortisation of $14,000.
7. Treasury stock is recorded at cost.
Instructions
Prepare the current assets section of Yasunari Kawabata Company’s December 31, 2017, balance sheet, with appropriate disclosures.
