4) Selected accounts follow of Bramble Limited at December 31, 2020: Finished Goods Inventory $158,000 Cost of Goods Sold $4,100,000 Unearned Revenue 105,000 Notes Receivable 43,000 Bank Overdraft 9,100 Accounts Receivable 271,000 Equipment 363,000 Raw Materials Inventory 317,000 Work-in-Process Inventory 35,000 Supplies Expense 72,000 Cash 68,000 Allowance for Doubtful Accounts 20,000 FV-NI Investments 36,000 Intangible Assets—Trade Names 34,000 Interest Payable 41,000 Contributed Surplus 16,000 Restricted Cash (for Plant Expansion) 68,000 Common Shares 299,000 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 $53,600. 3. The FV-NI investments have a fair value of $46,000. 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 $68,000 are pledged as collateral on a bank loan. 6. Intangible Assets—Trade Names are reported net of accumulated amortization of $19,000. 7. The bank overdraft is at the same bank as the amount reported above under Cash. (a) Prepare the current assets section of Bramble Limited’s statement of financial position as at December 31, 2020. (List Current Assets in order of liquidity.)

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 41E: Cost of goods sold and related items The following data were extracted from the accounting records...

See similar textbooks

Related questions

Concept explainers

Topic Video

Question

4) Selected accounts follow of Bramble Limited at December 31, 2020:

Finished Goods Inventory	$158,000	Cost of Goods Sold	$4,100,000
Unearned Revenue	105,000	Notes Receivable	43,000
Bank Overdraft	9,100	Accounts Receivable	271,000
Equipment	363,000	Raw Materials Inventory	317,000
Work-in-Process Inventory	35,000	Supplies Expense	72,000
Cash	68,000	Allowance for Doubtful Accounts	20,000
FV-NI Investments	36,000	Intangible Assets—Trade Names	34,000
Interest Payable	41,000	Contributed Surplus	16,000
Restricted Cash (for Plant Expansion)	68,000	Common Shares	299,000

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 $53,600.
3.		The FV-NI investments have a fair value of $46,000.
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 $68,000 are pledged as collateral on a bank loan.
6.		Intangible Assets—Trade Names are reported net of accumulated amortization of $19,000.
7.		The bank overdraft is at the same bank as the amount reported above under Cash.

(a)

Prepare the current assets section of Bramble Limited’s statement of financial position as at December 31, 2020. (List Current Assets in order of liquidity.)

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.