Samoa Limited is preparing its statement of financial position as of December 31, 2023. The following financial information is extracted from the ledger:- Land $340,000; Buildings $320,000; Accumulated depreciation - Buildings $90,000; Patents $180,000; Investment property $510,000; Ordinary share capital $870,000; Retained earnings $163,000; Revaluation reserve $66,000. Additional information is available:- a. Notes payable $560,000 issued on December 31, 2023. The notes will be paid in cash installments of $ 53,000 each on Dec. 31. The first installment (principal repayment $50,000, interest expense $3,000) will be paid on December 31, 2024. b. Prepaid rent of $ 45,000, covering January 1, 2024 to June 30, 2025. C. Unearned revenues $36,000 for services to be performed in 2024. d. Investment of $150,000 in the US treasury bills. The maturity date will be January 20, 2024. e. Investment in Gabon's shares is $240,000. The company plans to sell half of the shares by 2024. f. The director estimated the value of skilled production workers of the company at $300,000. g. The company declared a cash dividend of $30,000 on Dec 31 and to be paid in Jan 2024. Requirement Prepare a statement of financial position as of December 31, 2023 with proper classifications & sub-classifications based on the information given above in the space provided below.
Samoa Limited is preparing its statement of financial position as of December 31, 2023. The following financial information is extracted from the ledger:- Land $340,000; Buildings $320,000; Accumulated depreciation - Buildings $90,000; Patents $180,000; Investment property $510,000; Ordinary share capital $870,000; Retained earnings $163,000; Revaluation reserve $66,000. Additional information is available:- a. Notes payable $560,000 issued on December 31, 2023. The notes will be paid in cash installments of $ 53,000 each on Dec. 31. The first installment (principal repayment $50,000, interest expense $3,000) will be paid on December 31, 2024. b. Prepaid rent of $ 45,000, covering January 1, 2024 to June 30, 2025. C. Unearned revenues $36,000 for services to be performed in 2024. d. Investment of $150,000 in the US treasury bills. The maturity date will be January 20, 2024. e. Investment in Gabon's shares is $240,000. The company plans to sell half of the shares by 2024. f. The director estimated the value of skilled production workers of the company at $300,000. g. The company declared a cash dividend of $30,000 on Dec 31 and to be paid in Jan 2024. Requirement Prepare a statement of financial position as of December 31, 2023 with proper classifications & sub-classifications based on the information given above in the space provided below.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Samoa Limited is preparing its statement of financial position as of December 31,
2023. The following financial information is extracted from the ledger:-
Land $340,000; Buildings $320,000; Accumulated depreciation - Buildings $90,000; Patents
$180,000; Investment property $510,000; Ordinary share capital $870,000; Retained earnings
$163,000; Revaluation reserve $66,000.
Additional information is available:-
a.
Notes payable $560,000 issued on December 31, 2023. The notes will be paid in cash
installments of $ 53,000 each on Dec. 31. The first installment (principal repayment
$50,000, interest expense $3,000) will be paid on December 31, 2024.
b. Prepaid rent of $ 45,000, covering January 1, 2024 to June 30, 2025.
C.
d.
e.
f.
Unearned revenues $36,000 for services to be performed in 2024.
Investment of $150,000 in the US treasury bills. The maturity date will be January 20,
2024.
Investment in Gabon's shares is $240,000. The company plans to sell half of the shares
by 2024.
The director estimated the value of skilled production workers of the company at
$300,000.
g. The company declared a cash dividend of $30,000 on Dec 31 and to be paid in Jan 2024.
Requirement
Prepare a statement of financial position as of December 31, 2023 with proper classifications
& sub-classifications based on the information given above in the space provided below.
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