Prepare a properly classified statement of financial position. Notes to financial statements are included.. Problem 8-2 (IAA)Exemplar Company provided the following account balanceson December 31, 2020:Accounts receivableAdvances to officers-not currently collectibleSinking fundBuildingLong-term refundable depositCash and cash equivalentsCash surrender valueEquipmentPatentAccrued interest on notes receivableInventoriesLandLand held for speculationNotes receivableComputer softwarePrepaid expensesTrading securitiesUnearned rent incomeRetained earnings (deficit)Share premium - preferencePremium on bonds payablePreference share capitalShare premium - ordinaryNotes payableSSS payableAccounts payableAccrued salariesAccumulated depreciation-buildingAccumulated depreciation-equipmentAllowance for doubtful accountsBonds payableDividends payableOrdinary share capitalWithholding tax payablePreference share redemption fund400,000100,000400,0005,000,00050,000500,00060,0001,000,000100,00010,0001,300,0001,500,000500,000250,0003,250,00070,000280,00040,000(1,800,000)500,0001,000,0002,000,000200,000300,00010,000400,000100,0002,000,000200,00020,0005,000,000120,0005,000,00030,000350,000Required:Prepare a properly classified statement of financial positionon December 31, 2020.

statement of financial position with all necessary workings are as follows

Answered: Problem 8-2 (IAA) Exemplar Company…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Prepare a properly classified statement of financial position. Notes to financial statements are included..

Problem 8-2 (IAA)
Exemplar Company provided the following account balances
on December 31, 2020:
Accounts receivable
Advances to officers-not currently collectible
Sinking fund
Building
Long-term refundable deposit
Cash and cash equivalents
Cash surrender value
Equipment
Patent
Accrued interest on notes receivable
Inventories
Land
Land held for speculation
Notes receivable
Computer software
Prepaid expenses
Trading securities
Unearned rent income
Retained earnings (deficit)
Share premium - preference
Premium on bonds payable
Preference share capital
Share premium - ordinary
Notes payable
SSS payable
Accounts payable
Accrued salaries
Accumulated depreciation-building
Accumulated depreciation-equipment
Allowance for doubtful accounts
Bonds payable
Dividends payable
Ordinary share capital
Withholding tax payable
Preference share redemption fund
400,000
100,000
400,000
5,000,000
50,000
500,000
60,000
1,000,000
100,000
10,000
1,300,000
1,500,000
500,000
250,000
3,250,000
70,000
280,000
40,000
(1,800,000)
500,000
1,000,000
2,000,000
200,000
300,000
10,000
400,000
100,000
2,000,000
200,000
20,000
5,000,000
120,000
5,000,000
30,000
350,000
Required:
Prepare a properly classified statement of financial position
on December 31, 2020.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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