AC 302 CHAPTER 5 QUESTION 7

AC 302 CHAPTER 5 QUESTION 7
Name				Date			
Instructor				Course			
Intermediate Accounting 14th Edition by Kieso Weygandt and Warfield							
Primer on Using Excel in Accounting by Rex A Schildhouse							
							
E5-7 (Current Assets Section of the Balance Sheet) Presented below are selected accounts of Aramis Company at December 31, 2012.							
							
							
Finished Goods			$52,000 	Cost of Goods Sold			$2,100,000 
Unearned Revenue			90,000 	Notes Receivable			40,000 
Equipment			253,000 	Accounts Receivable			161,000 
Work in Process			34,000 	Raw Materials			187,000 
Cash			42,000 	Supplies Expense			60,000 
Equity Investments (Short-term)			31,000 	Allowance for Doubtful Accounts			12,000 
Customer Advances			36,000 	Licenses			18,000 
Cash Restricted 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 	(Assume they are trading securities.)		
4. The notes receivables are due April 30, 2014, with interest receivable every April 30. The notes bear							
interest at	6%	(Hint: Accrue interest due on December 31, 2012.)					
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:							
Prepare the current assets section of Aramis Company- December 31, 2012, balance sheet, with appropriate disclosures.							
							
							
Current assets							
Title					Amount		
Title					Amount	Formula	
Title						Amount	
Title							
					Amount		
Title					Amount	Formula	
Title						Amount	
Inventories at lower-of-cost-(determined using LIFO)-or-market							
Title					Amount		
Title					Amount		
Title					Amount	Formula	
Total current assets						Formula