Question

Presented below are selected accounts of Sheffield Company at December 31, 2017.

Inventory (finished goods)		$ 59,800		Cost of Goods Sold		$2,113,900
Unearned Service Revenue		94,800		Notes Receivable		40,400
Equipment		261,700		Accounts Receivable		170,720
Inventory (work in process)		43,100		Inventory (raw materials)		183,830
Cash (not including restricted cash)		40,000		Supplies Expense		55,820
Debt Investments (trading)		39,500		Allowance for Doubtful Accounts		12,420
Customer Advances		54,800		Licenses		16,580
Restricted Cash for Plant Expansion		59,500		Additional Paid-in Capital		80,630
				Treasury Stock		22,540

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 $46,245.
3.		The short-term investments have a fair value of $27,640.
4.		The notes receivable are due April 30, 2019, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrued interest due on December 31, 2017.)
5.		The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $53,800 are pledged as collateral on a bank loan.
6.		Licenses are recorded net of accumulated amortization of $14,840.
7.		Treasury stock is recorded at cost.

Prepare the current assets section of Sheffield Company’s December 31, 2017, balance sheet, with appropriate disclosures. (List Current Assets in order of liquidity. Enter account name only and do not provide the descriptive information provided in the question.)

Answer 1

Current Assets		Amount
Cash	99,500.00
Less: Restricted Cash for Plant Expansion	-59,500.00	40,000.00
Debt Investments (trading)		27,640.00
Interest Receivable(40400*0.06*8/12)		1,616.00
Accounts Receivable	1,70,720.00
Less: Allowance for Doubtful Accounts	-12,420.00	1,58,300.00
Inventories
Inventory (finished goods)	59,800.00
Inventory (work in process)	43,100.00
Inventory (raw materials)	1,83,830.00	2,86,730.00
Total Current Assets		5,14,286.00
Balance Sheet Liabilities Amount Assets Amount Share Capital Fixed Assets Additional Paid-in Capital                80,630 Equipment (Net)                 2,15,455 Treasury Stock               -22,540 Licenses (Net)                    16,580 P&L A/c             8,28,131 Investments Current Liabilities Debt Investments (trading)                    27,640 Customer Advances                54,800 Current Assets & Receivables Notes Receivable                    40,400 Interest Receivable                       1,616 Accounts Receivable (net)                 1,58,300 Unearned Service Revenue                    94,800 Inventories Inventory (finished goods)                    59,800 Inventory (raw materials)                 1,83,830 Inventory (work in process)                    43,100 Cash                      99,500             9,41,021                 9,41,021                          -