E5-7 (Current Assets Section of the Balance Sheet) Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2014.

Inventory ( nished goods) $ 52,000

Unearned Service Revenue 90,000

Equipment 253,000

Inventory (work in process) 34,000

Cash 37,000 Equity Investments (short-term) 31,000

Customer Advances 36,000

Restricted Cash for Plant Expansion 50,000

Cost of Goods Sold $2,100,000 Notes Receivable 40,000 Accounts Receivable 161,000 Inventory (raw materials) 207,000

Supplies Expense 60,000 Allowance for Doubtful Accounts 12,000

Licenses18,000

Additional Paid-in Capital 88,000

Treasury Stock 22,000

The following additional information is available.

Inventories are valued at lower-of-cost-or-market using LIFO.

Equipmentisrecordedatcost.Accumulateddepreciation,computedonastraight-linebasis,is$50,600.

The short-terminvestments have a fairvalue of $29,000.(Assumetheyaretradingsecurities.)

The notes receivable are due April30,2016,with interest receivable every April30.The notes bear

interest at 6%. (Hint: Accrued interest due on December 31, 2014.)

The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of

$50,000 are pledged as collateral on a bank loan.

Licenses are recorded net of accumulated amortization of $14,000.

Treasury stock is recorded at cost.

Instructions

Prepare the current assets section of Yasunari Kawabata Companys December 31, 2014, balance sheet, with appropriate disclosures.