Acc421 Intermediate Accounting: E5-7 Presented below are selected accounts of Aramis Company

Acc421 Intermediate Accounting

E5-7 (Current Assets Section of the Balance Sheet)
Presented below are selected accounts of Aramis Company at December 31, 2012.
Finished goods 52,000 Cost of goods sold 2,100,000
Revenue received in advance 90,000 Notes receivable 40,000
Equipment 253,000 Accounts receivable 161,000
Work-in-process 34,000 Raw materials 187,000
Cash 42,000 Supplies expense 60,000
Short-term investments in stock 31,000 Allowance for doubtful accounts 12,000
Customer advances 36,000 Licenses 18,000
Cash restricted 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. (Assume they are trading securities.)
4. The notes receivable are due April 30, 2014, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2012.)
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 Aramis Company's December 31, 2012, balance sheet, with appropriate disclosures. (List current assets in order of liquidity.)
Powered by