Pina Colada Corp's statement of financial position at the end of 2019 included the following items: $1,255,000 31,800 1,200,000 321,000 (144,000) (11,600) 41,600 $2,693,800 Current assets Land Buildings Equipment Accumulated depreciation-buildings Accumulated depreciation-equipment Intangible assets-patents Total The following information is available for the 2020 fiscal year: 1. 2. 3. 4. 5. 6. 7. 8. 9. Current liabilities Bonds payable Common shares Retained earnings (a) Total $1,095,800 1,211,000 199,000 188,000 Pina Colada prepares financial statements in accordance with IFRS. $2,693,800 Net income was $399,000. Interest paid is classified as operating activities. Equipment (cost of $20,300 and accumulated depreciation of $8,200) was sold for $10,400. Depreciation expense was $4,010 on the building and $9,130 on equipment. Amortization expense on a patent was $3,040. Current assets other than cash increased by $30,000. Current liabilities increased by $20,000. An addition to a building was completed at a cost of $32,600. An FV-OCI investment in shares was purchased for $20,900 on the last day of the year. This was the first such investment made by Pina Colada in its history. Bonds payable of $76,700 were issued at par. Cash dividends of $199,000 were declared and paid. Dividends paid are treated as financing activities. Prepare a statement of financial position (SFP) as at December 31, 2020. (Hint: You will need to adjust ("plug") the December 31, 2020 amount of current assets to ensure the SFP balances.) (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
Pina Colada Corp's statement of financial position at the end of 2019 included the following items: $1,255,000 31,800 1,200,000 321,000 (144,000) (11,600) 41,600 $2,693,800 Current assets Land Buildings Equipment Accumulated depreciation-buildings Accumulated depreciation-equipment Intangible assets-patents Total The following information is available for the 2020 fiscal year: 1. 2. 3. 4. 5. 6. 7. 8. 9. Current liabilities Bonds payable Common shares Retained earnings (a) Total $1,095,800 1,211,000 199,000 188,000 Pina Colada prepares financial statements in accordance with IFRS. $2,693,800 Net income was $399,000. Interest paid is classified as operating activities. Equipment (cost of $20,300 and accumulated depreciation of $8,200) was sold for $10,400. Depreciation expense was $4,010 on the building and $9,130 on equipment. Amortization expense on a patent was $3,040. Current assets other than cash increased by $30,000. Current liabilities increased by $20,000. An addition to a building was completed at a cost of $32,600. An FV-OCI investment in shares was purchased for $20,900 on the last day of the year. This was the first such investment made by Pina Colada in its history. Bonds payable of $76,700 were issued at par. Cash dividends of $199,000 were declared and paid. Dividends paid are treated as financing activities. Prepare a statement of financial position (SFP) as at December 31, 2020. (Hint: You will need to adjust ("plug") the December 31, 2020 amount of current assets to ensure the SFP balances.) (List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pina Colada Corp's statement of financial position at the end of 2019 included the following items:
$1,255,000
$1,095,800
31,800
1,211,000
1,200,000
199,000
321,000
188,000
(144,000 )
(11,600 )
41,600
$2,693,800
Current assets
Land
Buildings
Equipment
Accumulated depreciation-buildings
Accumulated depreciation-equipment
Intangible assets-patents
Total
The following information is available for the 2020 fiscal year:
1.
2.
3.
4.
5.
6.
7.
8.
9.
Current liabilities
Bonds payable
Common shares
Retained earnings
(a)
Total
$2,693,800
Net income was $399,000. Interest paid is classified as operating activities.
Equipment (cost of $20,300 and accumulated depreciation of $8,200) was sold for $10,400.
Depreciation expense was $4,010 on the building and $9,130 on equipment.
Amortization expense on a patent was $3,040.
Current assets other than cash increased by $30,000. Current liabilities increased by $20,000.
An addition to a building was completed at a cost of $32,600.
Pina Colada prepares financial statements in accordance with IFRS.
An FV-OCI investment in shares was purchased for $20,900 on the last day of the year. This was the first such investment
made by Pina Colada in its history.
Bonds payable of $76,700 were issued at par.
Cash dividends of $199,000 were declared and paid. Dividends paid are treated as financing activities.
Prepare a statement of financial position (SFP) as at December 31, 2020. (Hint: You will need to adjust ("plug") the December
31, 2020 amount of current assets to ensure the SFP balances.) (List Property, Plant and Equipment in order of Land, Buildings and
Equipment.)
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