Simple Company\'s and Relax Company\'s Statement of Financial Position PDF

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Simple Company's and Relax Company's Statement of Financial Position...

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Problem 8-1 (IAA) Simple Company Statement of Financial Position December 31, 2020 ASSETS Current Assets: Cash and cash equivalents Cash Financial assets at fair value Trading Securities Trade and other receivables Accounts Receivable Allowance for doubtful accounts Notes Receivable Claim Receivable Inventories Finished Goods Goods in Process Raw Materials Factory Supplies Prepaid expenses Prepaid Insurance

420,000 250,000 500,000 (50,000) 150,000 20,000 620,000 400,000 600,000 200,000 50,000

1,250,000 20,000

Total Current Assets Noncurrent Assets: Property, Plant and Equipment Land Building Machinery Tools Total Accumulated Depreciation: Building Machinery Carrying amount Long-Term Investments Investment in Bonds Plant Expansion Funds Intangible Assets Franchise Goodwill

2,560,000

1,500,000 4,000,000 2,000,000 40,000 7,540,000 (1,600,000) (1,300,000) 4,640,000 1,500,000 500,000 2,000,000 200,000 100,000

300,000

Total noncurrent assets

6,940,000 9,500,000

Total assets LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities: Trade and other payables Accounts Payable Notes Payable Accrued Interest on N/P Income tax payable Employees Income Tax Payable Accrued Expenses Advances from customers Current portion of serial bonds payable

300,000 100,000 10,000 60,000 20,000 30,000 100,000

620,000 500,000

Total Current Liabilities Noncurrent Liabilities: Serial Bonds Payable–remaining portion

1,120,000

2,000,000

Total noncurrent liabilities Shareholders’ Equity Share capital Reserves Share premium Retained Earnings

2,000,000 5,000,000 500,000 880,000

Total shareholders’ equity

6,380,000

Total liabilities and shareholders’ equity

9,500,000

Problem 8-3 (IAA)

Relax Company Statement of Financial Position December 31, 2020 ASSETS Note Current Assets: Cash and cash equivalents Trade and other receivables Inventories Prepaid Expenses

(1) (2)

400,000 750,000 1,000,000 100,000

Total current assets Noncurrent Assets: Property, plant and equipment Investment in associates Intangible assets

2,250,000 (3) (4)

5,600,000 1,300,000 350,000

Total noncurrent assets

7,250,000 9,500,000

Total assets LIABILITIES AND SHAREHOLDERS’ EQUITY Note Current Liabilities: Trade and other payables (5) Current portion of mortgage note payable Warranty liability (6) Total current liabilities

1,210,000 400,000 140,000 1,750,000

Noncurrent Liabilities: Mortgage note payable – remaining portion Bank loan payable – due June 30, 2022 Total noncurrent liabilities

1,600,000 500,000

Shareholders’ equity Share Capital Reserves Retained earnings unappropriated Total shareholders’ equity

3,000,000 1,400,000 1,250,000

Total liabilities and shareholders’ equity Note 1 – Cash and cash equivalents

(7)

2,100,000

5,650,000 9,500,000

Cash Total cash and cash equivalents

400,000 400,000

Note 2 – Trade and other receivables Accounts Receivable Allowance for doubtful accounts Total trade and other receivables

800,000 (50,000) 750,000

Note 3 – Property, plant and equipment Land Building Accumulated depreciation Machinery Accumulated depreciation Equipment Accumulated depreciation Total carrying amount

500,000 5,000,000 (2,000,000) 3,000,000 (1,200,000) 400,000 (100,000)

3,000,000 1,800,000 300,000 5,600,000

Note 4 – Intangible assets Trademark Secret processes and formulas Total intangible assets

150,000 200,000 350,000

Note – 5 Trade and other payables Accounts payable Notes payable Income tax payable Accrued expenses Total trade and other payables

350,000 750,000 50,000 60,000 1,210,000

Note – 6 Warranty liability Estimated liability for damages Total warranty liability

Note – 7 Reserves

140,000 140,000

Share premium Retained earnings appropriated for plant expansion Retained earnings appropriated for contingencies

300,000 1,000,000 100,000 1,400,000

*COMPUTATION FOR: Current portion of mortgage note payable Quarterly installments Times no. of installments to pay in 12 months Current portion of mortgage note payable

x

100,000 4 400,000

Remaining portion of mortgage note payable Total mortgage payable Quarterly installments 100,000 x 4 Remaining portion of mortgage note payable

2,000,000 (400,000) 1,600,000...