Exercise 5-7

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

Inventory (finished goods)		$ 58,970		Cost of Goods Sold		$2,153,000
Unearned Service Revenue		97,410		Notes Receivable		43,300
Equipment		262,000		Accounts Receivable		166,210
Inventory (work in process)		40,280		Inventory (raw materials)		209,040
Cash		43,020		Supplies Expense		76,281
Equity Investments (short-term)		35,360		Allowance for Doubtful Accounts		12,820
Customer Advances		43,800		Licenses		18,390
Restricted Cash for Plant Expansion		55,390		Additional Paid-in Capital		97,330
				Treasury Stock		27,060

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 $53,570.
3.		The short-term investments have a fair value of $37,600. (Assume they are trading securities.)
4.		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.)
5.		The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $51,500 are pledged as collateral on a bank loan.
6.		Licenses are recorded net of accumulated amortization of $14,310.
7.		Treasury stock is recorded at cost.

Prepare the current assets section of Yasunari Kawabata Companys December 31, 2014, 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.)