Selected accounts follow of Beta Ltd. at December 31, 2020: Finished Goods Inventory $304,000 Cost of Goods
Question:
Selected accounts follow of Beta Ltd. at December 31, 2020:
Finished Goods Inventory $304,000
Cost of Goods Sold $4,200,000
Unearned Revenue 180,000
Notes Receivable 80,000
Bank Overdraft 16,000
Accounts Receivable 322,000
Equipment 506,000
Raw Materials Inventory 374,000
Work-in-Process Inventory 68,000
Supplies Expense 120,000
Cash 100,000
Allowance for Doubtful Accounts 24,000
FV-NI Investments 62,000
Intangible Assets—Trade Names 36,000
Interest Payable 72,000
Contributed Surplus 32,000
Restricted Cash (for Plant Expansion) 100,000
Common Shares 544,000
The following additional information is available:
1. Inventory is valued at the lower of cost and net realizable value using FIFO.
2. Equipment is recorded at cost. Accumulated depreciation, calculated on a straight-line basis, is $101,200.
3. The FV-NI investments have a fair value of $58,000.
4. The notes receivable are due April 30, 2021, with interest receivable every April 30. The notes bear interest at 6%.
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $100,000 are pledged as collateral on a bank loan.
6. Intangible Assets—Trade Names are reported net of accumulated amortization of $28,000.
7. The bank overdraft is at the same bank as the amount reported above under Cash.
Required:
Prepare the current assets section of Beta Ltd.’s statement of financial position as at December 31, 2020, with appropriate disclosures.
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson, Wayne Thomas