In: Accounting
The statement of financial position of Larkspur Limited follows
for the current year, 2020:
LARKSPUR
LIMITED Statement of Financial Position December 31, 2020 |
||||||
Current assets | $167,580 | Current liabilities | $122,220 | |||
Investments | 108,360 | Long-term liabilities | 214,200 | |||
Property, plant, and equipment | 267,120 | Shareholders’ equity | 294,840 | |||
Intangible assets | 40,320 | |||||
Other assets | 47,880 | |||||
$631,260 | $631,260 |
The following additional information is available:
1. | Current Assets include the following: bank account with an overdraft balance of $18,900; inventory with a FIFO cost of $109,620 and a net realizable value of $107,100; accounts receivable of $83,160 less allowance for doubtful accounts of $3,780. | |
2. | Investments include the following: a mortgage receivable from parent company $75,600, due in 2025; FV-NI investments held for trading with a cost of $12,600 and a fair value of $15,120; FV-OCI investments with a cost of $18,900 and a fair value of $17,640. | |
3. | Property, Plant and Equipment include the following: land $30,240; buildings $548,100 less accumulated depreciation of $365,400; vehicles $99,540 less accumulated depreciation of $61,740; land held for future use $16,380. | |
4. | Intangible assets include the following:patents net of accumulated amortization of $40,320. | |
5. | Other assets include the following: customer deposits of $8,820, unearned revenue of $3,780, goodwill $55,440 and accumulated other comprehensive income (loss) of $(5,040). | |
6. | Current Liabilities include the following: pension obligation of $68,040, interest payable of $5,040; salaries and wages payable of $10,080; accounts payable $39,060. | |
7. | Long-term Liabilities include the following:demand bank loan of $94,500; mortgage payable $119,700 of which $8,820 is due in the next year. | |
8. | Shareholders’ Equity has 1,260 preferred shares (37,800 authorized) which were issued at an average price of $75 per share, and an unlimited number of authorized common shares with 69,300 shares issued at an average price of $1 per share, retained earnings of $131,040. |
Prepare a statement of financial position in good form.
(List Current Assets in order of liquidity. List
Property, Plant and Equipment in order of Land, Buildings and
Vehicles.)