Question: Presented below are selected accounts of Flounder Company at December 31, 2017.
| Inventory (finished goods) |
|
$ 52,400 |
|
Cost of Goods Sold |
|
$2,128,300 |
| Unearned Service Revenue |
|
98,100 |
|
Notes Receivable |
|
41,200 |
| Equipment |
|
262,900 |
|
Accounts Receivable |
|
162,410 |
| Inventory (work in process) |
|
35,700 |
|
Inventory (raw materials) |
|
181,040 |
| Cash (not including restricted cash) |
|
37,700 |
|
Supplies Expense |
|
65,400 |
| Equity Investments (short-term) |
|
36,000 |
|
Allowance for Doubtful Accounts |
|
11,090 |
| Customer Advances |
|
52,100 |
|
Licenses |
|
19,330 |
| Restricted Cash for Plant Expansion |
|
51,600 |
|
Additional Paid-in Capital |
|
93,920 |
|
|
|
|
Treasury Stock |
|
23,910 |
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 $48,003.
3. The short-term investments have a fair value of $29,840. (Assume they are trading securities.)
4. The notes receivable are due April 30, 2019, 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 $54,700 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $13,670.
7. Treasury stock is recorded at cost.
Prepare the current assets section of Flounder Company's December 31, 2017, 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.)