Reference no: EM131812557
Selected accounts follow of Flint Limited at December 31, 2017:
| Finished Goods Inventory |
|
$167,000 |
|
Cost of Goods Sold |
|
$2,700,000 |
| Unearned Revenue |
|
102,000 |
|
Notes Receivable
|
|
59,000
|
| Bank Overdraft |
|
9,100 |
|
Accounts Receivable
|
|
171,000
|
Equipment
|
|
343,000
|
|
Raw Materials Inventory |
|
197,000
|
Work-in-Process Inventory
|
|
41,000
|
|
Supplies Expense
|
|
72,000
|
| Cash |
|
61,000
|
|
Allowance for Doubtful Accounts
|
|
29,000
|
FV-NI Investments
|
|
47,000
|
|
Intangible Assets-Trade Names
|
|
33,000
|
Interest Payable
|
|
43,000
|
|
Contributed Surplus
|
|
18,000
|
Restricted Cash (for Plant Expansion)
|
|
61,000 |
|
Common Shares
|
|
339,000
|
The following additional information is available:
1. Inventory is valued at the lower of cost and net realizable value using FIFO.
2. Equipment is recorded at cost. Accumulated depreciation, calculated on a straight-line basis, is $68,600.
3. The fair value-net income investments have a fair value of $35,000.
4. The notes receivable are due April 30, 2018, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2017.)
5. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $61,000 are pledged as collateral on a bank loan.
6. Intangible Assets-Trade Names are reported net of accumulated amortization of $34,000.
7. The bank overdraft is at the same bank as the amount reported above under Cash.