Answered: Splish Brothers Limited had the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Splish Brothers Limited had the following statement of financial position for the current year, 2023: Current assets Investments Property, plant, and equipment Intangible assets Other assets SPLISH BROTHERS LIMITED Statement of Financial Position December 31, 2023 1. 2. $125,020 80,840 199,280 30,080 35,720 $470,940 Current liabilities Long-term liabilities Shareholders' equity $91,180 159,800 219,960 The following additional information is available and provides information regarding errors in classification which need to be corrected: to $470,940 Current Assets include the following: bank account with an overdraft balance of $14,100; inventory with a FIFO cost of $81,780 and a net realizable value of $79,900; accounts receivable of $62,040 less allowance for expected credit losses of $2,820. Investments include the following: a mortgage receivable from parent company $56,400, due in 2028; FV-NI investments held for trading with a cost of $9,400 and a fair value of $11,280; FV-OCI investments with a cost of $14,100 and a fair value of $13.160.

Splish Brothers Limited had the following statement of financial position for the current year, 2023:
SPLISH BROTHERS LIMITED
Statement of Financial Position
December 31, 2023
$125,020
80,840
199,280
30,080
35,720
$470,940
Current assets
Investments
Property, plant, and equipment
Intangible assets
Other assets
1.
Current liabilities
Long-term liabilities
Shareholders' equity
2
$91,180
159,800
219.960
The following additional information is available and provides information regarding errors in classification which need to be
corrected:
$470,940
Current Assets include the following: bank account with an overdraft balance of $14.100; inventory with a FIFO cost of
$81.780 and a net realizable value of $79,900; accounts receivable of $62,040 less allowance for expected credit losses of
$2,820.
Investments include the following a mortgage receivable from parent company $56,400, due in 2028; FV-NI investments
held for trading with a cost of $9,400 and a fair value of $11,280, FV-OCI investments with a cost of $14,100 and a fair value
of $13.160

2
3.
4.
5.
6.
7.
8.
Investments include the following: a mortgage receivable from parent company $56,400, due in 2028; FV-NI investments
held for trading with a cost of $9,400 and a fair value of $11,280; FV-OCI investments with a cost of $14,100 and a fair value
of $13,160.
Property. Plant and Equipment include the following: land $22,560; buildings $408,900 less accumulated depreciation of
$272,600; vehicles $74,260 less accumulated depreciation of $46,060; land held for future use $12,220.
Intangible assets include the following patents net of accumulated amortization of $30,080.
Other assets include the following: customer deposits of $6,580, unearned revenue of $2,820, goodwill $41,360 and
accumulated other comprehensive income (loss) of $(3,760).
Current Liabilities include the following: pension obligation of $50,760, interest payable of $3,760: salaries and wages
payable of $7,520; accounts payable $29,140.
Long-term Liabilities include the following: demand bank loan of $70,500; mortgage payable $89,300 of which $6,580 is due
in the next year.
Shareholders' Equity has 940 preferred shares (28,200 authorized) which were issued at an average price of $75 per share.
and an unlimited number of authorized common shares with 51,700 shares issued at an average price of $1 per share.
retained earnings of $97,760.
Prepare a statement of financial position in good form. (List Current Assets in order of liquidity. List Property. Plant, and Equipment in order
of Land, Buildings, and Vehicles.)

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions