Homework Help is Here – Start Your Trial Now!
Business
Accounting
Assets Goodwill (Note 1) Buildings (Note 2) Inventory Pina Colada Corporation Statement of Financial Position December 31, 2023 Investments-trading (Note 3) Land Accounts receivable $87,500 2,050,000 390,125 125,000 1,187,500 212,500 Investments in shares (FV-OCI) (Note 3) 108,750 Cash Assets allocated to trustee for plant expansion 219,875 Cash 150,000 Treasury notes, at cost and fair value 172,500 $4,703,750 Equities Notes payable (Note 4) Common shares, unlimited authorized, 500,000 issued Retained earnings Accounts payable Appreciation capital (Note 2) Income tax payable Reserve for depreciation of building $750,000 1,437,500 882,500 315,000 712,500 93,750 512,500 $4,703,750 Note 1: Goodwill in the amount of $87,500 was recognized because the company believed that the carrying amount of assets was not an accurate representation of the company's fair value. The gain of $87,500 was credited to Retained Earnings. Note 2: Buildings are stated at cost, except for one building that was recorded at its appraised value because management determined the building to be worth more than originally paid at acquisition. The excess of the appraisal value over cost was $712,500. Depreciation has been recorded based on cost. Note 3: Investments-trading are FV-NI investments and have a fair value of $93,750. Investments in shares (FV-OCI) have a fair value of $250,000. Both investments are currently recorded at cost. Note 4: Notes payable are long term except for the current principal instalment due of $125,000. Prepare a corrected classified statement of financial position in good form. The notes above are for information only. Assume that you have decided not to use the revaluation model for property, plant, and equipment. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings.) Current Assets Total Current Assets Total Assets PINA COLADA CORPORATION Statement of Financial Position December 31, 2023 Assets $ 19

Assets Goodwill (Note 1) Buildings (Note 2) Inventory Pina Colada Corporation Statement of Financial Position December 31, 2023 Investments-trading (Note 3) Land Accounts receivable $87,500 2,050,000 390,125 125,000 1,187,500 212,500 Investments in shares (FV-OCI) (Note 3) 108,750 Cash Assets allocated to trustee for plant expansion 219,875 Cash 150,000 Treasury notes, at cost and fair value 172,500 $4,703,750 Equities Notes payable (Note 4) Common shares, unlimited authorized, 500,000 issued Retained earnings Accounts payable Appreciation capital (Note 2) Income tax payable Reserve for depreciation of building $750,000 1,437,500 882,500 315,000 712,500 93,750 512,500 $4,703,750 Note 1: Goodwill in the amount of $87,500 was recognized because the company believed that the carrying amount of assets was not an accurate representation of the company's fair value. The gain of $87,500 was credited to Retained Earnings. Note 2: Buildings are stated at cost, except for one building that was recorded at its appraised value because management determined the building to be worth more than originally paid at acquisition. The excess of the appraisal value over cost was $712,500. Depreciation has been recorded based on cost. Note 3: Investments-trading are FV-NI investments and have a fair value of $93,750. Investments in shares (FV-OCI) have a fair value of $250,000. Both investments are currently recorded at cost. Note 4: Notes payable are long term except for the current principal instalment due of $125,000. Prepare a corrected classified statement of financial position in good form. The notes above are for information only. Assume that you have decided not to use the revaluation model for property, plant, and equipment. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings.) Current Assets Total Current Assets Total Assets PINA COLADA CORPORATION Statement of Financial Position December 31, 2023 Assets $ 19

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
Assets Goodwill (Note 1) Buildings (Note 2) Inventory Pina Colada Corporation Statement of Financial Position December 31, 2023 Investments-trading (Note 3) Land Accounts receivable $87,500 2,050,000 390,125 125,000 1,187,500 212,500 Investments in shares (FV-OCI) (Note 3) 108,750 Cash Assets allocated to trustee for plant expansion 219,875 Cash 150,000 Treasury notes, at cost and fair value 172,500 $4,703,750 Equities Notes payable (Note 4) Common shares, unlimited authorized, 500,000 issued Retained earnings Accounts payable Appreciation capital (Note 2) Income tax payable Reserve for depreciation of building $750,000 1,437,500 882,500 315,000 712,500 93,750 512,500 $4,703,750 Note 1: Goodwill in the amount of $87,500 was recognized because the company believed that the carrying amount of assets was not an accurate representation of the company's fair value. The gain of $87,500 was credited to Retained Earnings. Note 2: Buildings are stated at cost, except for one building that was recorded at its appraised value because management determined the building to be worth more than originally paid at acquisition. The excess of the appraisal value over cost was $712,500. Depreciation has been recorded based on cost. Note 3: Investments-trading are FV-NI investments and have a fair value of $93,750. Investments in shares (FV-OCI) have a fair value of $250,000. Both investments are currently recorded at cost. Note 4: Notes payable are long term except for the current principal instalment due of $125,000.
Transcribed Image Text:Assets Goodwill (Note 1) Buildings (Note 2) Inventory Pina Colada Corporation Statement of Financial Position December 31, 2023 Investments-trading (Note 3) Land Accounts receivable $87,500 2,050,000 390,125 125,000 1,187,500 212,500 Investments in shares (FV-OCI) (Note 3) 108,750 Cash Assets allocated to trustee for plant expansion 219,875 Cash 150,000 Treasury notes, at cost and fair value 172,500 $4,703,750 Equities Notes payable (Note 4) Common shares, unlimited authorized, 500,000 issued Retained earnings Accounts payable Appreciation capital (Note 2) Income tax payable Reserve for depreciation of building $750,000 1,437,500 882,500 315,000 712,500 93,750 512,500 $4,703,750 Note 1: Goodwill in the amount of $87,500 was recognized because the company believed that the carrying amount of assets was not an accurate representation of the company's fair value. The gain of $87,500 was credited to Retained Earnings. Note 2: Buildings are stated at cost, except for one building that was recorded at its appraised value because management determined the building to be worth more than originally paid at acquisition. The excess of the appraisal value over cost was $712,500. Depreciation has been recorded based on cost. Note 3: Investments-trading are FV-NI investments and have a fair value of $93,750. Investments in shares (FV-OCI) have a fair value of $250,000. Both investments are currently recorded at cost. Note 4: Notes payable are long term except for the current principal instalment due of $125,000.
Prepare a corrected classified statement of financial position in good form. The notes above are for information only. Assume that you have decided not to use the revaluation model for property, plant, and equipment. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings.) Current Assets Total Current Assets Total Assets PINA COLADA CORPORATION Statement of Financial Position December 31, 2023 Assets $ 19
Transcribed Image Text:Prepare a corrected classified statement of financial position in good form. The notes above are for information only. Assume that you have decided not to use the revaluation model for property, plant, and equipment. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings.) Current Assets Total Current Assets Total Assets PINA COLADA CORPORATION Statement of Financial Position December 31, 2023 Assets $ 19
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS