Inventory (finished goods)

$60,670

Cost of Goods Sold

Unearned Service Revenue

93,470

Notes Receivable

Equipment

258,300

Accounts Receivable

Inventory (work in process)

40,690

Inventory (raw materials)

Cash

42,050

Supplies Expense

Equity Investments (short-term)

31,460

Allowance for Doubtful Accounts

Customer Advances

39,000

Licenses

Restricted Cash for Plant Expansion

59,120

Additional Paid-in Capital

Treasury Stock

Inventory (finished goods)

$60,670

Cost of Goods Sold

.

Inventories are valued at lower-of-cost-or-market using LIFO.

Unearned Service Revenue

93,470

Notes Receivable

2

Equipment is recorded at cost. Accumulated depreciation, computed on a straight-line basis, is $59,600.

Equipment

258,300

Accounts Receivable

3

The short-term investments have a fair value of $29,580. (Assume they are trading securities.)

Inventory (work in process)

40,690

Inventory (raw materials)

4

The notes receivable are due April 30, 2016, with interest receivable every April 30. The notes bear interest at 6%. (Hint:Accrued interest due on December 31, 2014.)

Cash

42,050

Supplies Expense

5

The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $52,300 are pledged as collateral on a bank loan.

Equity Investments (short-term)

31,460

Allowance for Doubtful Accounts

6

Licenses are recorded net of accumulated amortization of $14,890.

Customer Advances

39,000

Licenses

7

Treasury stock is recorded at cost.

Restricted Cash for Plant Expansion

59,120

Additional Paid-in Capital

Treasury Stock