In: Accounting
Selected accounts follow of Concord Limited at December 31,
2020:
Finished Goods Inventory |
$157,000 |
Cost of Goods Sold |
$3,900,000 | |||
---|---|---|---|---|---|---|
Unearned Revenue |
104,000 |
Notes Receivable |
48,000 | |||
Bank Overdraft |
9,100 |
Accounts Receivable |
181,000 | |||
Equipment |
263,000 |
Raw Materials Inventory |
227,000 | |||
Work-in-Process Inventory |
38,000 |
Supplies Expense |
80,000 | |||
Cash |
69,000 |
Allowance for Doubtful Accounts |
22,000 | |||
FV-NI Investments |
43,000 |
Intangible Assets—Trade Names |
25,000 | |||
Interest Payable |
47,000 |
Contributed Surplus |
17,000 | |||
Restricted Cash (for Plant Expansion) |
69,000 |
Common Shares |
321,000 |
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 $58,600. | |
3. | The FV-NI investments have a fair value of $42,000. | |
4. | The notes receivable are due April 30, 2021, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2020.) | |
5. | The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $69,000 are pledged as collateral on a bank loan. | |
6. | Intangible Assets—Trade Names are reported net of accumulated amortization of $22,000. | |
7. | The bank overdraft is at the same bank as the amount reported above under Cash. |
(a)
Prepare the current assets section of Concord Limited’s statement
of financial position as at December 31, 2020.