Question

2. Assume instead that KIP uses IFRS. Prepare its balance sheet as of December 31, 2016. KIP INTERNATIONAL PRODUCTS COMPANY Balance Sheet December 31, 2016 Assets Noncurrent Assets Investment in held-to-maturity bonds $ Accrued wages Accrued wages Bonds payable (due 2019) $ Less: Accumulated depreciation-buildings $ Total noncurrent assets $ Current Assets Cash $ $ Prepaid items $ Total current assets Total Assets $ Shareholders' Equity Contributed Capital $ Total contributed capital $ Retained earnings Total contributed capital and Retained earnings $ Total Shareholders' Equity Liabilities Noncurrent Liabilities $ $ Total noncurrent liabilities Current Liabilities $ Total current liabilities $ Total Liabilities $ Total Shareholders' Equity and Liabilities $

Answer 1

KIP INTERNATIONAL PRODUCTS COMPANY
Balance Sheet
December 31, 2016
Assets
Non Current Assets
Investment in Held-to-Maturity Bonds		$9,000.00
Sinking Fund for Bond Retirement		$4,000.00
Land		$9,500.00
Building	$50,000.00
Less: Accumulated Depreciation: Buildings	-$12,400.00	$37,600.00
Equipment	$29,000.00
Less: Accumulated Depreciation: Equipment	-$8,300.00	$20,700.00
Patents (net)		$2,400.00
Total Noncurrent Assets		$83,200.00
Current Assets:
Cash	-	$8,200.00
Accounts Receivable	$13,800.00
Less: Allowance for Doubtful Accounts	-$700.00	$13,100.00
Inventory		$24,400.00
Prepaid Items:
Prepaid Insurance	$900.00
Office Supplies	$1,900.00	$2,800.00
Total Current Assets		$48,500.00
Total Assets		$131,700.00
Shareholders’ Equity
Contributed Capital
Preferred stock $50 par	$10,000.00
Common stock, $10 par	$15,000.00
Additional paid-in capital on preferred stock	$1,600.00
Additional paid-in capital on common stock	$7,700.00
Total contributed capital	$34,300.00
Retained earnings	$25,800.00
Total contributed capital and retained earnings	$60,100.00
Less: Treasury stock (at cost)	-$1,500.00
Total Shareholders’ Equity		$58,600.00
Liabilities
Noncurrent Liabilities:
Bonds payable (due 2019)	$29,000.00
Less: Discount on bonds payable	-$2,000.00
	$27,000.00
Notes payable (due /1/2019)	$17,000.00
Total noncurrent liabilities		$44,000.00
Current Liabilities:
Accounts payable	$16,500.00
Current interest payable	$2,900.00
Dividends payable	$1,800.00
Accrued wages	$3,700.00
Current income taxes payable	$4,200.00
Total current liabilities		$29,100.00
Total Liabilities		$73,100.00
Total Shareholders’ Equity and Liabilities		$131,700.00