5e-7 - Amount Title(50,000($50,000 Title Amount Title...

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Exercise 5-7, Page 1 of 1, 02/24/2010, 07:42:57 Name: Exercise: E5-7, Current Assets Section of the Balance Sheet Course: Date: Presented below are selected accounts of Aramis Company at December 31, 2010. Finished Goods $52,000 Cost of Goods Sold $2,100,000 Revenue Received in Advance 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 Short-term Investments in Stock 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: $50,600 $29,000 (Assume they are trading securities.) interest at 6% (Hint: Accrue interest due on December 31, 2010.) pledged as collateral on a bank loan for the amount of: $50,000 $14,000 Instructions: Current assets Title
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Unformatted text preview: Amount Title (50,000) ($50,000) 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 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 3. The short-term investments have a fair value of 4. The notes receivables are due April 30, 2012, with interest receivable every April 30. The notes bear 5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable are 6. Licenses are recorded net of accumulated amortization of 7. Treasury stock is recorded at cost. Prepare the current assets section of Aramis Company’s December 31, 2010, balance sheet, with appropriate disclosures....
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