Chapter 1 Problem 2-3
Problem 2-3
Exemplar Company
Statement of Financial Position
December 31, 2008
A S S E T S
Current assets: Note
Cash and cash equivalents 500,000
Trading securities 280,000
Trade and other receivables (1) 640,000
Inventories 1,300,000
Prepaid expenses 70,000
Total current assets 2,790,000
Noncurrent assets:
Property, plant and equipment (2) 5,300,000
Long-term investments (3) 1,310,000
Intangible assets (4) 3,350,000
Other noncurrent assets (5) 150,000
Total noncurrent assets 10,110,000
Total assets 12,900,000
9
LIABILITIES AND SHAREHOLDERS’ EQUITY
Note
Current liabilities:
Trade and other payables (6) 1,000,000
Noncurrent liabilities:
Bonds payable 5,000,000
Premium on bonds payable 1,000,000
Total noncurrent liabilities 6,000,000
Shareholders’ equity:
Share capital (7) 7,000,000
Reserves (8) 700,000
Retained earnings (deficit) (1,800,000)
Total shareholders’ equity 5,900,000
Total liabilities and shareholders’ equity 12,900,000
Note 1 - Trade and other receivables
Accounts receivable 400,000
Allowance for doubtful accounts ( 20,000)
Notes receivable 250,000
Accrued interest on notes receivable 10,000
Total 640,000
Note 2 - Property, plant and equipment
Accum. Book
Cost depr. value
Land 1,500,000 - 1,500,000
Building 5,000,000 2,000,000 3,000,000
Equipment 1,000,000 200,000 800,000
Total 7,500,000 2,200,000 5,300,000
Note 3 - Long-term investments
Land held for speculation 500,000
Sinking fund 400,000
Preference share redemption fund 350,000
Cash surrender value 60,000
Total 1,310,000
Note 4 - Intangible assets
Computer software 3,250,000
Lease rights 100,000
Total 3,350,000
10
Note 5 - Other noncurrent assets
Advances to officers, not collectible currently 100,000
Long-term refundable deposit 50,000
Total 150,000
Note 6 - Trade and other payables
Accounts payable 400,000
Notes payable 300,000
Unearned rent income 40,000
SSS payable 10,000
Accrued salaries 100,000
Dividends payable 120,000
Withholding tax payable 30,000
Total 1,000,000
Note 7 – Share capital
Preference share capital 2,000,000
Ordinary share capital 5,000,000
Total 7,000,000
Note 8 - Reserves
Share premium – preference 500,000
Share premium – ordinary 200,000
Total 700,000
No comments:
Post a Comment