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Presented below are selected accounts of Waterway Company at December 31, 2020. Inventory (finished goods) $...

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

Inventory (finished goods) $ 60,000 Cost of Goods Sold $2,144,900
Unearned Service Revenue 98,600 Notes Receivable 42,800
Equipment 259,900 Accounts Receivable 148,990
Inventory (work in process) 35,700 Inventory (raw materials) 176,340
Cash 41,700 Supplies Expense 59,790
Debt Investments (trading) 31,500 Allowance for Doubtful Accounts 11,800
Customer Advances 51,100 Licenses 16,500
Restricted Cash for Plant Expansion 54,000 Additional Paid-in Capital 85,240
Treasury Stock 23,460


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 $52,647.
3. The short-term investments have a fair value of $28,680.
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 $46,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $15,030.
7. Treasury stock is recorded at cost.


Prepare the current assets section of Waterway 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.)Presented below are selected accounts of Waterway Company at December 31, 2020.

Inventory (finished goods) $ 60,000 Cost of Goods Sold $2,144,900
Unearned Service Revenue 98,600 Notes Receivable 42,800
Equipment 259,900 Accounts Receivable 148,990
Inventory (work in process) 35,700 Inventory (raw materials) 176,340
Cash 41,700 Supplies Expense 59,790
Debt Investments (trading) 31,500 Allowance for Doubtful Accounts 11,800
Customer Advances 51,100 Licenses 16,500
Restricted Cash for Plant Expansion 54,000 Additional Paid-in Capital 85,240
Treasury Stock 23,460


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 $52,647.
3. The short-term investments have a fair value of $28,680.
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 $46,000 are pledged as collateral on a bank loan.
6. Licenses are recorded net of accumulated amortization of $15,030.
7. Treasury stock is recorded at cost.


Prepare the current assets section of Waterway 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.)

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Answer #1


Waterway Company 95700 -54000 41700 28680 148990 -11800 Current assets Cash Less: Cash restricted for plant expansion Trading

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