Prepare a statement of financial position as of December 31, 2023
Question 1
CP Development Limited is preparing its statement of financial position as of December 31, 2023. There are some issues regarding the correct classification of the following:
Investment of $ 150,000 in the US treasury bills. The maturity date will be February 18,2024.
Prepaid rent of $ 72,000, covering January 1, 2024 to December 31, 2025.
Notes payable $ 600,000 issued on December 31, 2023. The notes will be paid in cash installments of $ 66,000 each on De 31 The first installment (principal repayment 60,000, interest expense 6,000) will be paid on December 31, 2024.
Deferred revenues $36,000 for services to be performed in 2024.
Investment in shares of Barlockers is $ 240,000. The company plans to sell half of Barlocker’s' shares by 2024.
Prepare a statement of financial position as of December 31, 2023 with proper classifications & sub-classifications based on the information given above and together with the following accounts:
Land $300,000; Buildings $360,000;
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