Question

Presented below are selected accounts of Pina Company at December 31, 2020. Cost of Goods Sold $ 57,100 99,000 259,100 41,700 Inventory (finished goods) Unearned Service Revenue Equipment Inventory (work in process) Cash Debt Investments (trading) Customer Advances Restricted Cash for Plant Expansion $2,105,600 37,200 164,180 195,590 64,430 11,240 17,770 Notes Receivable Accounts Receivable Inventory (raw materials) Supplies Expense Allowance for Doubtful Accounts Licenses Additional Paid-in Capital Treasury Stock 42,600 32,700 42,900 50,800 86,610 23,020 The following additional information is available. 1. 2. 3. 4. Inventories are valued at lower-of-cost-or-market using LIFO. Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $50,080. The short-term investments have a fair value of $30,750. 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.) The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $52,700 are pledged as collateral on a bank loan. Licenses are recorded net of accumulated amortization of $13,410. Treasury stock is recorded at cost. 5. 6. 7.

Answer 1

PINA COMPANY
Balance Sheet (Partial)
December 31, 2020.
Current Assets:
Cash		$42,600
Interest Receivable ($37,200*6/100*9/12 months)		$1,674
Accounts Receivable ($164,180 - $52,700)	$111,480
Less: Allowance for Doubtful Accounts	($11,240)	$100,240
Debt Investments (trading) - Short-term		$30,750
Inventory:
Inventory (raw materials)	$195,590
Inventory (work in process)	$41,700
Inventory (finished goods)	$57,100
		$294,390
Total Current Assets		$469,654

Note: It is a partial balance sheet prepared for total current assets, hence, the other items of the balance sheet like long-term and intangible assets, liabilities and stockholders' equity are not required to prepare.