Exercise 5-7 Presented below are selected accounts of Yasunari Kawabata Company
ID: 2404021 • Letter: E
Question
Exercise 5-7
Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2017.
The following additional information is available.
Prepare the current assets section of Yasunari Kawabata Company’s December 31, 2017, balance sheet, with appropriate disclosures. (List Current Assets in order of liquidity. Enter account name only and do not provide the descriptive information provided in the question.)
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Inventory (finished goods) $ 52,000 Cost of Goods Sold $2,100,000 Unearned Service Revenue 90,000 Notes Receivable 40,000 Equipment 253,000 Accounts Receivable 161,000 Inventory (work in process) 34,000 Inventory (raw materials) 207,000 Cash (not including restricted cash) 37,000 Supplies Expense 60,000 Debt Investments (trading) 31,000 Allowance for Doubtful Accounts 12,000 Customer Advances 36,000 Licenses 18,000 Restricted Cash for Plant Expansion 50,000 Additional Paid-in Capital 88,000 Treasury Stock 22,000Explanation / Answer
YASUNARI KAWABATA COMPANY
Balance Sheet (Partial)
for the year ended 31 december 2017
**Interest on note is due for 8 months [april-dec] = 40000* .06*8/12]=1600
YASUNARI KAWABATA COMPANY
Balance Sheet (Partial)
for the year ended 31 december 2017
current asset cash 37000 Debt Investments (trading) 29000 Accounts receivable 161000 less:Allowance for doubtful account (12000) 149000 Interest receivable 1600 Inventories Raw material 207000 work in process 34000 Finished goods 52000 293000 Total current assetc 509600