Presented below are selected accounts of Yasunari\nKawabata Company at December 31, 2014\nInventory (fi nished goods) $ 52,000 Cost of Goods Sold $2,100
Presented below are selected accounts of Yasunari
\r\nKawabata Company at December 31, 2014
\r\nInventory (fi nished goods) $ 52,000 Cost of Goods Sold $2,100,000
\r\nUnearned Service Revenue 90,000 Notes Receivable 40,000
\r\nEquipment 253,000 Accounts Receivable 161,000
\r\nInventory (work in process) 34,000 Inventory (raw materials) 207,000
\r\nCash 37,000 Supplies Expense 60,000
\r\nEquity Investments (short-term) 31,000 Allowance for Doubtful Accounts 12,000
\r\nCustomer Advances 36,000 Licenses 18,000
\r\nRestricted Cash for Plant Expansion 50,000 Additional Paid-in Capital 88,000
\r\nTreasury Stock 22,000
\r\nThe following additional information is available.
\r\n1. Inventories are valued at lower-of-cost-or-market using LIFO.
\r\n2. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $50,600.
\r\n3. The short-term investments have a fair value of $29,000. (Assume they are trading securities.)
\r\n4. The notes receivable are due April 30, 2016, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrued interest due on December 31, 2014.)
\r\n5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of
\r\n$50,000 are pledged as collateral on a bank loan.
\r\n6. Licenses are recorded net of accumulated amortization of $14,000.
\r\n7. Treasury stock is recorded at cost.
\r\nInstructions
\r\nPrepare the current assets section of Yasunari Kawabata Company’s December 31, 2014, balance sheet, with appropriate disclosures.