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

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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Inventory (finished goods) Unearned Service Revenue Equipment Inventory (work in process) Cash Debt Investments (trading) Customer Advances Restricted Cash for Plant Expansion $ 52,000 90,000 Cost of Goods Sold Notes Receivable 253,000 Accounts Receivable 34,000 Inventory (raw materials) 37,000 Supplies Expense 31,000 Allowance for Doubtful Accounts 36,000 Licenses 50,000 Additional Paid-in Capital Treasury Stock $2,100,000 40,000 161,000 207,000 60,000 12,000 18,000 88,000 22,000