Exercise 5-7

Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2017.

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 $22,000

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.

4.The notes receivable are due April 30, 2019, with interest receivable every April 30. The notes bear interest at6%. (Hint:Accrued interest due on December 31, 2017.)

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.

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.)