Question

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.)

Answer 1