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
 
 
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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