Question

Statement of financial position items for Blue Spruce Inc. follow for the current year, 2020:

Goodwill		$133,750		Accumulated depreciation—equipment		$312,440
Bank loan		190,022		Inventory		256,586
Bonds payable due 2024		303,900		Rent payable		48,150
Cash		385,200		Income tax payable		105,247
Land		513,600		Rent payable (long-term)		513,600
Notes receivable		476,899		Common shares (20,000 shares issued)		214,000
Notes payable		283,550		Preferred shares (15,000 shares issued)		160,500
Accounts payable		524,300		Prepaid expenses		94,074
Retained earnings		?		Equipment		1,572,900
Income tax receivable		104,464		FV-NI investments		129,470
Notes payable (due in five years)		1,712,000		Accumulated depreciation—buildings		289,114
				Buildings		1,754,800

Prepare a classified statement of financial position in good form. The numbers of authorized shares are as follows: unlimited common and 20,000 preferred. Assume that income tax accounts, notes receivable, bank loan, and notes payable are short-term, unless stated otherwise, and that the FV-NI investments are stated at fair value. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Blue Spruce Inc. Statement of Financial Position
Assets
							$
					$
			$
							$
Liabilities and Shareholders' Equity
							$
					$
			$
							$

Answer 1

	Statement of Financial Position of Blue Spruce Inc.
	Assets		Amount in $
	Current Assets
	Cash		385,200
	Notes Receivable		476,899
	Inventory		256,586
	Income Tax Receivable		104,464
	Prepaid Expenses		94,074
	Total Current Assets		1,317,223
	Property, Plant & Equipment
	Land		513,600
	Building at Cost	1,754,800	1,465,686
	Less: Accumulated Depreciation	-289,114
	Equipment at Cost	1,572,900	1,260,460
	Less: Accumulated Depreciation	-312,440
	Intangible Assets
	Goodwill		133,750
	FV-NI Investments		129,470
	Total non Current Assets		3,502,966
	Total Assets		4,820,189
	Liabilities & Shareholders Equity
	Current Liabilities
	Accounts Payable		524,300
	Notes Payable		283,550
	Income Tax Payable		105,247
	Bank Loan		190,022
	Rent Payable		48,150
	Total Current Liabilities		1,151,269
	Long term Liabilities
	Bond Payable Due 2024		303,900
	Notes Payable (due in Five years)		1,712,000
	Rent Payable ( Long Term)		513,600
	Total Long term Liabilities		2,529,500
	Stockholder's Equity
	Common Shares (20,000 issued )		214,000
	Preferred Shares (15,000 issued)		160,500
	Retained Earnings		764,920
	Total Owners Equity		1,139,420
	Total Liabilities & Shareholders Equity		4,820,189