Presented below are selected accounts of Pharoah Company at December 31, 2025.
Inventory (finished goods) $55,400
Cost of Goods Sold $2,107,000
Unearned Service Revenue $91,800
Notes Receivable $41,000
Equipment $257,000
Accounts Receivable $167,690
Inventory (work in process) $40,900
Inventory (raw materials) $204,760
Cash $42,500
Supplies Expense $64,900
Debt Investments (trading) $33,400
Allowance for Doubtful Accounts $11,550
Customer Advances $54,000
Licenses $18,250
Restricted Cash for Plant Expansion $56,800
Additional Paid-in Capital $84,910
Treasury Stock $20,070
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 $54,384. The short-term investments have a fair value of $29,490.
3. The notes receivable are due April 30, 2027, with interest receivable every April 30. The notes bear interest at 6%. (Hint: Accrue interest due on December 31, 2025).
4. The allowance for doubtful accounts applies to the accounts receivable. Accounts receivable of $46,200 are pledged as collateral on a bank loan.
5. Licenses are recorded net of accumulated amortization of $14,980.
6. Treasury stock is recorded at cost.
