Reference no: EM132496191

Finished Goods Inventory                    $154,000

Cost of Goods Sold                            $4,000,000

Unearned Revenue                             92,000

Notes Receivable                               50,000

Bank Overdraft                                   9,700

Accounts Receivable                           361,000

Equipment                                          363,000

Raw Materials Inventory                        227,000

Work-in-Process Inventory                     39,000

Supplies Expense                                  70,000

Cash                                                   58,000

Allowance for Doubtful Accounts             13,000

FV-NI Investments                               48,000

Intangible Assets-Trade Names                  28,000

Interest Payable                                    53,000

Contributed Surplus                               15,000

Restricted Cash (for Plant Expansion)       58,000

Common Shares                                  310,000

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 $56,600.

3. The FV-NI investments have a fair value of $30,000.

4. The notes receivable are due April 30, 2021, 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 $58,000 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.

Question (a) Prepare the current assets section of Novak Limited's statement of financial position as at December 31, 2020.