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Presented below are selected accounts of Ayayai Company at December 31, 2020. Inventory (finished goods) Unearned Service Revenue Equipment Inventory (work in process) Cash Debt
Presented below are selected accounts of Ayayai Company at December 31, 2020. Inventory (finished goods) Unearned Service Revenue Equipment Inventory (work in process) Cash Debt Investments (trading) Customer Advances Restricted Cash for Plant Expansion $ 60,100 90,800 257,600 34,600 42,200 37,000 52,700 56,100 Cost of Goods Sold Notes Receivable Accounts Receivable Inventory (raw materials) Supplies Expense Allowance for Doubtful Accounts Licenses Additional Paid-in Capital Treasury Stock $2,155,700 39,600 161,840 185,820 64,880 12,220 19,080 92,790 22,870 The following additional information is available. 1. 2. 3. 4. Inventories are valued at lower-of-cost-or-market using LIFO. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $55,490. The short-term investments have a fair value of $31,450. The notes receivable are due April 30, 2022, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2020.) The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $49,100 are pledged as collateral on a bank loan. Licenses are recorded net of accumulated amortization of $12,600. Treasury stock is recorded at cost. 5. 6. 7. AYAYAI COMPANY Balance Sheet (Partial) December 31, 2020 Current Assets Cash $ Cash Cash Surrender Value of Life Insurance Restricted Cash $ Presented below are selected accounts of Ayayai Company at December 31, 2020. Inventory (finished goods) Unearned Service Revenue Equipment Inventory (work in process) Cash Debt Investments (trading) Customer Advances Restricted Cash for Plant Expansion $ 60,100 90,800 257,600 34,600 42,200 37,000 52,700 56,100 Cost of Goods Sold Notes Receivable Accounts Receivable Inventory (raw materials) Supplies Expense Allowance for Doubtful Accounts Licenses Additional Paid-in Capital Treasury Stock $2,155,700 39,600 161,840 185,820 64,880 12,220 19,080 92,790 22,870 The following additional information is available. 1. 2. 3. 4. Inventories are valued at lower-of-cost-or-market using LIFO. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $55,490. The short-term investments have a fair value of $31,450. The notes receivable are due April 30, 2022, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2020.) The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $49,100 are pledged as collateral on a bank loan. Licenses are recorded net of accumulated amortization of $12,600. Treasury stock is recorded at cost. 5. 6. 7. AYAYAI COMPANY Balance Sheet (Partial) December 31, 2020 Current Assets Cash $ Cash Cash Surrender Value of Life Insurance Restricted Cash $
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