The following information is for Ayayai Corporation as of December 31, 2017. Restricted Cash for Retirement of long- term debt $23,000 Additional Paid-in Capital $54,000 Equipment (cost) 111,000 Accounts Receivable 71,000 Inventory (work in process) 13,000 Inventory (raw materials) 59,000 Cash (unrestricted) 21,000 Supplies Expense 16,000 Inventory (finished goods) 32,000 Cost of Goods Sold 404,000 Equity Investments (cost) 8,000 Allowance for Doubtful Accounts 2,000 Customer Advances 11,000 Licenses 6,000 Unearned Service Revenue 35,000 Notes Receivable 16,000 Treasury Stock 12,000 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 $5,500. 4. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $37,250. 5. The equity investments have a fair value of $7,200. (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 Ayayai Corporation’s balance sheet with appropriate disclosures on the face of the balance sheet. (List Current Assets in orde

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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Question

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

Restricted Cash for Retirement of long- term debt	$23,000	Additional Paid-in Capital	$54,000
Equipment (cost)	111,000	Accounts Receivable	71,000
Inventory (work in process)	13,000	Inventory (raw materials)	59,000
Cash (unrestricted)	21,000	Supplies Expense	16,000
Inventory (finished goods)	32,000	Cost of Goods Sold	404,000
Equity Investments (cost)	8,000	Allowance for Doubtful Accounts	2,000
Customer Advances	11,000	Licenses	6,000
Unearned Service Revenue	35,000	Notes Receivable	16,000
		Treasury Stock	12,000

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 $5,500.
4.		Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $37,250.
5.		The equity investments have a fair value of $7,200. (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 Ayayai 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.)