The following information is for Blue Spruce Corporation as of December 31, 2017. Restricted Cash for Retirement of long- term debt $25,300 Additional Paid-in Capital $56,400 Equipment (cost) 111,000 Accounts Receivable 72,000 Inventory (work in process) 14,400 Inventory (raw materials) 59,800 Cash (unrestricted) 21,400 Supplies Expense 16,400 Inventory (finished goods) 33,300 Cost of Goods Sold 406,000 Equity Investments (cost) 9,200 Allowance for Doubtful Accounts 3,800 Customer Advances 11,300 Licenses 7,600 Unearned Service Revenue 35,000 Notes Receivable 25,600 Treasury Stock 13,000 The following additional information is available. 1. Inventories are valued at lower-of-cost-or-market using FIFO. 2. Treasury stock is recorded at cost. 3. Licenses are recorded net of accumulated amortization of $6,400. 4. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $39,750. 5. The equity investments have a fair value of $8,400. (Assume they are trading securities.) 6. The allowance for doubtful accounts applies to the accounts receivable. 7. The notes receivable are due in full on March 31, 2019, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrued interest due on December 31, 2017.) Prepare the current assets section of Blue Spruce Corporation’s balance sheet with appropriate disclosures on the face of the balance sheet. (List Current Assets in order of liquidity. Enter account name only and do not provide the descriptive information.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information is for Blue Spruce Corporation as of December 31, 2017.

Restricted Cash for Retirement of long- term debt	$25,300	Additional Paid-in Capital	$56,400
Equipment (cost)	111,000	Accounts Receivable	72,000
Inventory (work in process)	14,400	Inventory (raw materials)	59,800
Cash (unrestricted)	21,400	Supplies Expense	16,400
Inventory (finished goods)	33,300	Cost of Goods Sold	406,000
Equity Investments (cost)	9,200	Allowance for Doubtful Accounts	3,800
Customer Advances	11,300	Licenses	7,600
Unearned Service Revenue	35,000	Notes Receivable	25,600
		Treasury Stock	13,000

The following additional information is available.

1.		Inventories are valued at lower-of-cost-or-market using FIFO.
2.		Treasury stock is recorded at cost.
3.		Licenses are recorded net of accumulated amortization of $6,400.
4.		Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $39,750.
5.		The equity investments have a fair value of $8,400. (Assume they are trading securities.)
6.		The allowance for doubtful accounts applies to the accounts receivable.
7.		The notes receivable are due in full on March 31, 2019, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrued interest due on December 31, 2017.)

Prepare the current assets section of Blue Spruce Corporation’s balance sheet with appropriate disclosures on the face of the balance sheet. (List Current Assets in order of liquidity. Enter account name only and do not provide the descriptive information.)