Updates in Philippine Accounting and Financial Reporting Standards
Updates in Philippine Accounting and Financial Reporting Standards
Learning Activities
Name:
Class Schedule:
Directions: Read and analyze the following activity and answer what is required. Submit
your work in the pigeon boxes which are provided in your department/college, or to
google class on or before the date as reflected in your study schedule. See Rubrics in
appendix. You may also access the rubrics in the classwork section in the google
classroom.
Activity 1
Loving Care Company provided the following balances on December 21, 2021:
Franchise 200,000
Goods in process 600,000
Building 4,000,000
Employees income tax payable 20,000
Prepaid insurance 20,000
Raw materials 200,000
Notes payable 100,000
Cash 420,000
Accounts receivable 500,000
Retained earnings 880,000
Finished goods 400,000
Accrued Expenses 30,000
Trading securities 250,000
Claim receivable 20,000
Machinery 2,000,000
Advance from customer 100,000
Tools 40,000
Goodwill 100,000
Accumulated Depreciation-Machinery 1,300,000
Allowance for doubtful account 50,000
Plant expansion fund 500,000
Serial bonds payable (500,000 due 2,500,000
every) July 31 of each year
Accounts payable 300,000
Share capital 5,000,000
Accumulated Depreciation-Building 1,600,000
Income tax payable 60,000
Factory supplies 50,000
Share premium 500,000
Accrued interest on notes payable 10,000
Investment in bonds 1,500,000
Land 1,500,000
Notes Receivable 150,000
Required:
Prepare a properly classified statement of financial position on December 31, 2021
Assets
Current Assets: Note
Cash 420,000
Trading Securities 250,000
Trade and Other Receivables (1) 620,000
Inventories (2) 1,250,000
Prepaid Insurance 20,000
Total Current Assets 2,560,000
Noncurrent Assets:
Property, Plant and Equipment (3) 4,640,000
Long-Term Investments (4) 2,000,000
Intangible Assets (5) 300,000
Total noncurrent assets 6,940,000
Total Assets 9,500,000
Shareholders' Equity:
Note 2 - Inventories
Finished Goods 400,000
Goods in Process 600,000
Raw Materials 200,000
Factory Supplies 50,000
Total Inventories 1,250,000