The adjusted trial balance of Friendships Co. as of December 31, 20x1 is shown below: Debits Credits 62,350 Cash on hand Cash in bank - BPI (Savings) Cash in bank - BPI (Current) Cash in bank - BDO (Current) Accounts receivable Allowance for doubtful accounts Advances to employees Loans receivable (due in 20x4) Unearned interest income Raw materials inventory Work in process inventory Finished goods inventory Prepaid income tax Prepaid supplies Advances to suppliers Held for trading securities Investment in equity securities - FVOCI Investment in associate Interest receivable (due on Mar. 1, 20x2) Land Building Accumulated depreciation - Bldg. Equipment Accumulated depreciation - Equipt. Accounts payable Accrued liabilities Income tax payable Deferred tax asset 1,720,500 1,890,234 567,891 8,341,689 347,182 57,610 9,827,341 1,234,819 1,237,398 7,987,908 12,892,309 234,125 890,239 34,981 2,834,079 987,234 1,290,347 946,013 8,980,751 3,419,877 712,930 917,387 234,125 9,071,239 889,712 721,346 1,092,387 44 Chapter Deferred tax liability Loans payable (due in 20x2) Discount on loan payable Interest payable (due on July 1, 20x2) Deferred credits 918,732 8,000,000 746,252 341,782 712,788 Provision for warranty obligations Ordinary share capital Share premium Retained earnings - unrestricted Retained earnings - appropriated Revaluation surplus Unrealized gains on equity securities - FVOCI Totals 432,187 20,000,000 6,000,000 15,144,664 1,200,000 873,984 123,412 66,958,902 66,958 902 Requirements: a. Prepare the statement of financial position of Friendships Co. like a pro. b. Prepare notes showing the breakdown of line items in the financial statement. Make proper cross-referencing of those notes; use "Note.4" as your first cross-reference.
The adjusted trial balance of Friendships Co. as of December 31, 20x1 is shown below: Debits Credits 62,350 Cash on hand Cash in bank - BPI (Savings) Cash in bank - BPI (Current) Cash in bank - BDO (Current) Accounts receivable Allowance for doubtful accounts Advances to employees Loans receivable (due in 20x4) Unearned interest income Raw materials inventory Work in process inventory Finished goods inventory Prepaid income tax Prepaid supplies Advances to suppliers Held for trading securities Investment in equity securities - FVOCI Investment in associate Interest receivable (due on Mar. 1, 20x2) Land Building Accumulated depreciation - Bldg. Equipment Accumulated depreciation - Equipt. Accounts payable Accrued liabilities Income tax payable Deferred tax asset 1,720,500 1,890,234 567,891 8,341,689 347,182 57,610 9,827,341 1,234,819 1,237,398 7,987,908 12,892,309 234,125 890,239 34,981 2,834,079 987,234 1,290,347 946,013 8,980,751 3,419,877 712,930 917,387 234,125 9,071,239 889,712 721,346 1,092,387 44 Chapter Deferred tax liability Loans payable (due in 20x2) Discount on loan payable Interest payable (due on July 1, 20x2) Deferred credits 918,732 8,000,000 746,252 341,782 712,788 Provision for warranty obligations Ordinary share capital Share premium Retained earnings - unrestricted Retained earnings - appropriated Revaluation surplus Unrealized gains on equity securities - FVOCI Totals 432,187 20,000,000 6,000,000 15,144,664 1,200,000 873,984 123,412 66,958,902 66,958 902 Requirements: a. Prepare the statement of financial position of Friendships Co. like a pro. b. Prepare notes showing the breakdown of line items in the financial statement. Make proper cross-referencing of those notes; use "Note.4" as your first cross-reference.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Use proper format when answering
Transcribed Image Text:The adjusted trial balance of Friendships Co. as of December 31,
20x1 is shown below:
Debits
Credits
Cash on hand
Cash in bank - BPI (Savings)
Cash in bank - BPI (Current)
Cash in bank - BDO (Current)
Accounts receivable
Allowance for doubtful accounts
Advances to employees
Loans receivable (due in 20x4)
Unearned interest income
Raw materials inventory
Work in process inventory
Finished goods inventory
Prepaid income tax
Prepaid supplies
Advances to suppliers
Held for trading securities
Investment in equity securities - FVOCI
Investment in associate
Interest receivable (due on Mar. 1, 20x2)
Land
Building
Accumulated depreciation - Bldg.
Equipment
Accumulated depreciation - Equipt.
Accounts payable
Accrued liabilities
Income tax payable
Deferred tax asset
62,350
1,720,500
1,890,234
567,891
8,341,689
347,182
57,610
9,827,341
1,234,819
1,237,398
7,987,908
12,892,309
234,125
890,239
34,981
2,834,079
987,234
1,290,347
946,013
8,980,751
3,419,877
712,930
917,387
234,125
9,071,239
889,712
721,346
1,092,387
44
Chapter1
Deferred tax liability
Loans payable (due in 20x2)
Discount on loan payable
Interest payable (due on July 1, 20x2)
Deferred credits
918,732
8,000,000
746,252
341,782
712,788
Provision for warranty obligations
Ordinary share capital
Share premium
Retained earnings - unrestricted
Retained earnings - appropriated
Revaluation surplus
Unrealized gains on equity securities - FVOCI
432,187
20,000,000
6,000,000
15,144,664|
1,200,000
873,984
123,412
66,958,902 66,958 902
Totals
Requirements:
a. Prepare the statement of financial position of Friendships Co.
like a pro.
b. Prepare notes showing the breakdown of line items in the
financial statement. Make proper cross-referencing of those
notes; use "Note.4" as your first cross-reference.
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