Chapter 1 Problem 2-1
Easy Company
Statement of Financial Position
December 31, 2008
A S S E T S
Current assets: Note
Cash and cash equivalents 800,000
Accounts receivable 450,000
Inventories 900,000
Prepaid expenses (1) 200,000
Total current assets 2,350,000
Noncurrent assets:
Property, plant and equipment (2) 4,400,000
Long-term investments 950,000
Intangible asset (3) 800,000
Total noncurrent assets 6,150,000
Total assets 8,500,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade and other payables (4) 450,000
Note payable, short-term debt 200,000
Total current liabilities 650,000
Noncurrent liabilities:
Mortgage payable, due in 5 years 1,500,000
Note payable, long-term debt 500,000
Total noncurrent liabilities 2,000,000
Shareholders’ equity:
Share capital, P100 par 4,000,000
Share premium 500,000
Retained earnings 1,350,000
Total shareholders’ equity 5,850,000
Total liabilities and stockholders’ equity 8,500,000
Note 1 - Prepaid expenses
Office supplies 50,000
Prepaid rent 150,000
Total prepaid expenses 200,000
6
Note 2 - Property, plant and equipment
Property, plant and equipment 5,600,000
Accumulated depreciation (1,200,000)
Net book value 4,400,000
Note 3 - Intangible asset
Patent 800,000
Note 4 - Trade and other payables
Accounts payable 350,000
Accrued expenses 100,000
Total 450,000
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