Prepare the current assets section of aramis companys


Problem - Presented below are selected accounts of Aramis Company at December 31, 2012.

Finished Goods $60,900 Cost of Goods Sold $2,178,000

Unearned Revenue 94,330 Notes Receivable 59,600

Equipment 260,100 Accounts Receivable 162,730

Work-in-Process 42,070 Raw Materials 188,890

Cash 40,130 Supplies Expense 76,097

Equity Investments (short-term) 39,690 Allowance for Doubtful Accounts 12,160

Customer Advances 48,100 Licenses 18,410

Cash Restricted for Plant Expansion 50,380 Additional Paid-in Capital 91,560

Treasury Stock 26,880

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 $54,960.

3. The short-term investments have a fair value of $36,800. (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 $60,000 are pledged as collateral on a bank loan.

6. Licenses are recorded net of accumulated amortization of $14,820.

7. Treasury stock is recorded at cost.

Prepare the current assets section of Aramis Company's December 31, 2012, balance sheet, with appropriate disclosures?

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Prepare the current assets section of aramis companys
Reference No:- TGS02781541

Now Priced at $25 (50% Discount)

Recommended (99%)

Rated (4.3/5)