Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd
Upload
5 views

Financial-Position-and-Notes-to-FS_Assignment

The document outlines three financial problems related to the reporting of current assets and liabilities as of December 31, 2020. Problem 1 requires calculating total current assets, Problem 2 focuses on determining total current liabilities considering refinancing options, and Problem 3 involves preparing a statement of financial position with supporting notes. Each problem provides specific financial data for analysis.

Uploaded by

Jake
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
5 views

Financial-Position-and-Notes-to-FS_Assignment

The document outlines three financial problems related to the reporting of current assets and liabilities as of December 31, 2020. Problem 1 requires calculating total current assets, Problem 2 focuses on determining total current liabilities considering refinancing options, and Problem 3 involves preparing a statement of financial position with supporting notes. Each problem provides specific financial data for analysis.

Uploaded by

Jake
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Assignment

Financial Position and Note to FS

Problem 1.

An entity reported the following current assets on December 31, 2020:


Cash in bank 4,000,000
Accounts receivable 7,000,000
Notes receivable 2,500,000
Note receivable discounted (400,000)
Inventory 4,500,000
Financial asset – FVPL 1,000,000
Financial asset – FVOCI 1,500,000
Prepaid expenses 200,000
Deferred tax asset 2,500,000
Equipment classified as “held for sale” 2,000,000
Total 24,800,000

Customers’ accounts 5,000,000


Allowance for doubtful accounts (500,000)
Sales price of unsold goods out of consignment at 125% of
cost and excluded from the ending inventory 2,500,000
Net accounts receivable 7,000,000

What amount should be reported as total current assets on December 31, 2020?

Problem 2.
An entity provided the following information on December 31, 2020?

Accounts payables 2,000,000


Accrued expenses 800,000
Bonds payable due December 31, 2021 2,500,000
Premiums on bonds payable 300,000
Deferred tax liability 500,000
Income tax payable 1,100,000
Cash dividend payable 600,000
Share dividend payable 400,000
Note payable 6% - due March 1, 2021 1,500,000
Note payable 8% - due October 1, 2021 1,000,000

The financial statements for 2020 were issued on March 31, 2021. On March 1, 2021, the 6% note
payable was refinanced on a long-term basis. Under the loan agreement for the 8% note payable,
the entity has the discretion to refinance the obligation for at least twelve months after
December 31, 2020. What amount should be reported as total current liabilities?
Problem 3.
Socorro Company provided the following information on December 31, 2020:

Current assets 3,100,000 Current liabilities 1,000,000


Other assets 5,900,000 Long term liabilities 1,000,000
Capital 7,000,000

Cash (including P200,000 invested in money market and restricted foreign 1,000,000
deposit of P300,000)
Land held for undetermined use 500,000
Accounts receivable less allowance of P50,000 700,000
Inventories 600,000
Socorro Corporation share capital, at cost 300,000
Total current assets 3,100,000

Store supplies 50,000


Building less allowance of P500,000 3,000,000
Equipment less allowance of P250,000 750,000
Financial assets at amortized cost 1,000,000
Trademark 300,000
Advances to officers-indefinite repayment 150,000
Patent 250,000
Land 400,000
Total other assets 5,900,000

Accounts payable 500,000


Note payable, due December 31, 2021 100,000
Income tax payable 150,000
Share premium 250,000
Total current liabilities 1,000,000

Unearned leasehold income (five years starting 2021) 350,000


Stock dividend payable 150,000
Serial bonds payable (P100,000 maturing annually) 500,000
Total long-term liabilities 1,000,000

Retained earnings 1,500,000


Share capital, P100 par 5,000,000
Retained earnings appropriated for plant expansions 500,000
Total capital 7,000,000

Required: Prepare statement of financial position with supporting notes and computations.

You might also like