E4.7 (LO 1) Current Assets Section of the Balance Sheet
Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2025.
Inventory (finished goods) $ 52,000 Cost of Goods Sold $ 2,100,000
Unearned Service Revenue 90,000 Notes Receivable 40,000
Equipment 253,000 Accounts Receivable 161,000
Inventory (work in process) 34,000 Inventory (raw materials) 207,000
Cash 37,000 Supplies Expense 60,000
Debt Investments (short-term) 31,000 Allow. for Doubtful Accounts 12,000
Customer Advances 36,000 Licenses 18,000
Restricted Cash for Plant Expansion 50,000 Additional Paid-in Capital 88,000
Treasury Stock 22,000
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 $50,600.
3. The short-term investments have a fair value of $29,000.
4. The notes receivable are due April 30, 2027, with interest receivable every April 30. The notes
bear interest at 6%. (Hint: Accrue interest due on December 31, 2025.)
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable
of $50,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $14,000.
7. Treasury stock is recorded at cost.
Instructions
Complete the current assets section of Yasunari Kawabata Company’s December 31, 2025, balance
sheet, with appropriate disclosures.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the
yellow shaded input cells.
, Current Assets Section of the Balance Sheet
Current assets
, Solution: E4.7 (LO 1) Current Assets Section of the Balance Sheet
Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2025.
Inventory (finished goods) $ 52,000 Cost of Goods Sold $ 2,100,000
Unearned Service Revenue 90,000 Notes Receivable 40,000
Equipment 253,000 Accounts Receivable 161,000
Inventory (work in process) 34,000 Inventory (raw materials) 207,000
Cash 37,000 Supplies Expense 60,000
Debt Investments (short-term) 31,000 Allow. for Doubtful Accounts 12,000
Customer Advances 36,000 Licenses 18,000
Restricted Cash for Plant Expansion 50,000 Additional Paid-in Capital 88,000
Treasury Stock 22,000
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 $50,600.
3. The short-term investments have a fair value of $29,000.
4. The notes receivable are due April 30, 2027, with interest receivable every April 30. The notes
bear interest at 6%. (Hint: Accrue interest due on December 31, 2025.)
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable
of $50,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $14,000.
7. Treasury stock is recorded at cost.
Instructions
Complete the current assets section of Yasunari Kawabata Company’s December 31, 2025, balance
sheet, with appropriate disclosures.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the
yellow shaded input cells.
Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2025.
Inventory (finished goods) $ 52,000 Cost of Goods Sold $ 2,100,000
Unearned Service Revenue 90,000 Notes Receivable 40,000
Equipment 253,000 Accounts Receivable 161,000
Inventory (work in process) 34,000 Inventory (raw materials) 207,000
Cash 37,000 Supplies Expense 60,000
Debt Investments (short-term) 31,000 Allow. for Doubtful Accounts 12,000
Customer Advances 36,000 Licenses 18,000
Restricted Cash for Plant Expansion 50,000 Additional Paid-in Capital 88,000
Treasury Stock 22,000
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 $50,600.
3. The short-term investments have a fair value of $29,000.
4. The notes receivable are due April 30, 2027, with interest receivable every April 30. The notes
bear interest at 6%. (Hint: Accrue interest due on December 31, 2025.)
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable
of $50,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $14,000.
7. Treasury stock is recorded at cost.
Instructions
Complete the current assets section of Yasunari Kawabata Company’s December 31, 2025, balance
sheet, with appropriate disclosures.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the
yellow shaded input cells.
, Current Assets Section of the Balance Sheet
Current assets
, Solution: E4.7 (LO 1) Current Assets Section of the Balance Sheet
Presented below are selected accounts of Yasunari Kawabata Company at December 31, 2025.
Inventory (finished goods) $ 52,000 Cost of Goods Sold $ 2,100,000
Unearned Service Revenue 90,000 Notes Receivable 40,000
Equipment 253,000 Accounts Receivable 161,000
Inventory (work in process) 34,000 Inventory (raw materials) 207,000
Cash 37,000 Supplies Expense 60,000
Debt Investments (short-term) 31,000 Allow. for Doubtful Accounts 12,000
Customer Advances 36,000 Licenses 18,000
Restricted Cash for Plant Expansion 50,000 Additional Paid-in Capital 88,000
Treasury Stock 22,000
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 $50,600.
3. The short-term investments have a fair value of $29,000.
4. The notes receivable are due April 30, 2027, with interest receivable every April 30. The notes
bear interest at 6%. (Hint: Accrue interest due on December 31, 2025.)
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable
of $50,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $14,000.
7. Treasury stock is recorded at cost.
Instructions
Complete the current assets section of Yasunari Kawabata Company’s December 31, 2025, balance
sheet, with appropriate disclosures.
NOTE: Enter a formula, a cell reference, or a value (if you are unable to reference a cell), into the
yellow shaded input cells.
