Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2025. The following additional information

Question:

Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2025.image


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.


4. The notes receivable are due April 30, 2027, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2025.)


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.



Instructions


Prepare the current assets section of Yasunari Kawabata Company’s December 31, 2025, balance sheet, with appropriate disclosures.

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Related Book For  book-img-for-question

Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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