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.

Answer 1

Please hit LIKE button if this helped.
For any further explanation, please put your query in comment,
will get back to you.
Current Assets:
Cash ($100,000+$100,000-$16,000)		$     184,000
Less: Restricted for Plant Expansion		$   -100,000	$         84,000
FV-NI Investment (Fair Value)			$         58,000
Accounts Receivable		$     322,000
Less: Allowance for doubtful accounts		$     -24,000	$       298,000
Note Receivable			$         80,000
Interest Receivable ($80,000*6%*8/12)			$           3,200
Inventory (Lower of FIFO Cost or NRV):
Finished Goods		$     304,000
Work in process		$       68,000
Raw Material		$     374,000	$       746,000
Total Current Assets			$   1,269,200