Question

Presented below are selected accounts of Carla Company at December 31, 2020.

Inventory (finished goods)		$ 58,600		Cost of Goods Sold		$2,109,500
Unearned Service Revenue		97,000		Notes Receivable		42,000
Equipment		260,700		Accounts Receivable		161,850
Inventory (work in process)		42,300		Inventory (raw materials)		202,780
Cash		43,700		Supplies Expense		62,840
Debt Investments (trading)		33,500		Allowance for Doubtful Accounts		12,140
Customer Advances		52,200		Licenses		19,180
Restricted Cash for Plant Expansion		54,000		Additional Paid-in Capital		92,560
				Treasury Stock		21,680

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 $54,748.
3.		The short-term investments have a fair value of $28,540.
4.		The notes receivable are due April 30, 2022, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2020.)
5.		The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $46,700 are pledged as collateral on a bank loan.
6.		Licenses are recorded net of accumulated amortization of $14,410.
7.		Treasury stock is recorded at cost.

Prepare the current assets section of Carla Company’s December 31, 2020, balance sheet, with appropriate disclosures. (List Current Assets in order of liquidity. Enter account name only and do not provide the descriptive information provided in the question.)

CARLA COMPANY Balance Sheet (Partial)                                                           December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity
					$
AddLess:
Current AssetsCurrent LiabilitiesIntangible AssetsLong-term InvestmentsLong-term LiabilitiesProperty, Plant and EquipmentStockholders' EquityTotal AssetsTotal Current AssetsTotal Current LiabilitiesTotal Intangible AssetsTotal LiabilitiesTotal Liabilities and Stockholders' EquityTotal Long-term InvestmentsTotal Long-term LiabilitiesTotal Property, Plant and EquipmentTotal Stockholders' Equity					$

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Answer 1

Answer:

Balance Sheet (Partial) December 31, 2020
Current Assets:
Cash (43700+54000)	97700
Less: Restricted cash for plant expansion	(54000)	43700
short term Investment (Debt)		28540
Accounts receivable (46700 pleaged)	161850
Less: Allowance for doubtfull A/c	(12140)	149710
Interest Receivable (42000*6%8/12)		1680
Inventories at ower of Cost or LIFO
Finished goods	58600
Work in process	42300
Raw materials	202780	303680
Total Current Assets		527310