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Current Assets Section of the Balance Sheet Presented below are selected accounts of Yasunari Kawabata Company at December 31 2014 Finished Goods $52000 Cost of Goods Sold $2100000 Unearned

 (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 CompanyAc€?cs December 31, 2014, balance sheet, with appropriate disclosures.
 
Current assets
Title Amount  
Title Amount Formula  
Title   Amount  
Title  
Amount  
Title Amount Formula  
Title   Amount  
Inventories at lower-of-cost-(determined using LIFO)-or-market  
Title Amount  
Title Amount  
Title Amount Formula  
Total current assets Formula  

Does this look good below?

Cash.....................................................................................$ 130,500*
Less: Cash restricted for plant expansion................................(75,000) $ 55,500
Trading securities at fair value (cost, $46,500)..........................................43,500
Accounts receivable (of which $75,000 is
pledged as collateral on a bank loan)...................................241,500
Less: Allowance for doubtful accounts....................................(18,000) 223,500
Interest receivable [($60,000 X 12%) X 8/12]....................... 4,800
Inventories at lower of cost (determined
using LIFO) or market
Finished goods................................................................ 78,000
Work-in-process............................................................. 51,000
Raw materials.................................................................. 310,500 439,500
_______________________________________________________________________________________

Total current assets.................................................... $766,800

May 23 2020 View more View Less

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