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Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2014.


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.


TUTORIAL PREVIEW
Prepare the current assets section of Yasunari Kawabata Company’s December 31, 2014, balance sheet, with appropriate disclosures.
Current assets
Cash
$87,000
   Less: Cash Restricted for Plant Expansion
-50,000
$37,000


File name: E5-7Yasunari.xls File type: .xls PRICE: $3.50