Question
Selected accounts follow of Concord Limited at December 31, 2020: Finished Goods Inventory $157,000 Cost of Goods Sold $3,900,000 Unearned Revenue 104,000 Notes Receivable 48,000
Selected accounts follow of Concord Limited at December 31, 2020:
Finished Goods Inventory | $157,000 | Cost of Goods Sold | $3,900,000 | |||
---|---|---|---|---|---|---|
Unearned Revenue | 104,000 | Notes Receivable | 48,000 | |||
Bank Overdraft | 9,100 | Accounts Receivable | 181,000 | |||
Equipment | 263,000 | Raw Materials Inventory | 227,000 | |||
Work-in-Process Inventory | 38,000 | Supplies Expense | 80,000 | |||
Cash | 69,000 | Allowance for Doubtful Accounts | 22,000 | |||
FV-NI Investments | 43,000 | Intangible AssetsTrade Names | 25,000 | |||
Interest Payable | 47,000 | Contributed Surplus | 17,000 | |||
Restricted Cash (for Plant Expansion) | 69,000 | Common Shares | 321,000 |
The following additional information is available:
1. | Inventory is valued at the lower of cost and net realizable value using FIFO. | |
2. | Equipment is recorded at cost. Accumulated depreciation, calculated on a straight-line basis, is $58,600. | |
3. | The FV-NI investments have a fair value of $42,000. | |
4. | The notes receivable are due April 30, 2021, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2020.) | |
5. | The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $69,000 are pledged as collateral on a bank loan. | |
6. | Intangible AssetsTrade Names are reported net of accumulated amortization of $22,000. | |
7. | The bank overdraft is at the same bank as the amount reported above under Cash. |
(a) Prepare the current assets section of Concord Limiteds statement of financial position as at December 31, 2020.
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