The bookkeeper for Village Corp has prepared the following balance sheet as at December 31, 2024: Village Corp Balance Sheet December 31, 2024 Cash $ 93,000 Current Liabilities $ 250,000 Accounts Receivable (net) 55,600 Long-term Liabilities 600,000 Inventories 70,000 Shareholders’ Equity 63,600 Investments 30,000 Land 200,000 Building (net) 450,000 Tradename (net) 15,000 $913,600 $913,600 The following additional information is provided: 1. The cash balance includes: Petty cash fund $ 100 T-bill 5,000 Cash advance to employee, payable on demand 2,000 Saving Account at TD Bank 35,500 Money market fund 10,000 10333333,00038,000 Chequing account at the Bank of Montreal 41,600 Bank overdraft at the Scotia Bank (no other accounts are held at this bank) BankCIBC) (1,200) Total $ 93,000 2. The allowance for doubtful accounts $8,400. 3. The net realizable value of the inventory that is included in the Balance Sheet is $65,000. • Inventories do not include $45,000 of merchandise that was in transit at December 31. • Of this amount, $20,000 was bought from ONG Inc. with terms f.o.b. destination point (the net realizable value of this inventory was $34,000) • The remainder of inventory that cost $20,000 was shipped from Village to Park Inc. for consignment. The net realizable value for this inventory is $36,000. 4. The investments section includes the following: • An interest bearing note receivable of $10,000 that was issued on October 1st, 2024 bearing interest at 3% and is due on October 1, 2025 • Long-term FV-OCI investment $8,000 carrying value (fair value $12,000 at December 31,2024). Management plans on holding on to these investments for a number of years. • FV-NI Investment 1,000 common shares of Landon Inc. purchased at $12.00 per share (fair value $9.50 per share at December 31, 2024). Village expected to sell the shares as soon as the market price increases more next year. 5. The land balance includes: land used for operations and recorded at its cost of $200,000 (the appraisal value of the land in 2024 was $500,000). The company doesn’t use the revaluation model. 6. The building originally cost $800,000. Depreciation for 2024 has already been recorded. Scotiabank has pledged the building as security for their $600,000 loan to Village Corp. (collateral), the loan bears annual interests at 8%. 7. The tradename originally cost $24,000 and is being amortized over 6 years on a straight-line basis. Amortization for 2024 had already been recorded. Required: Part 1 The company is a Canadian public company. Restate the asset side of Village’s Statement of Financial Position at December 31, 2024 in good form. The categories are: Current Assets, Long-term Investments, Property, Plant & Equipment and Intangible Assets. Part 2 Including any disclosure requirements. Part 3 Based on any changes to the value of the assets what account would be included in the Statement of Earnings and what section would each of the items be included in? Do not include Amortization Expense or Bad Debt Expense. Part 4 Assuming the Accumulated Other Comprehensive Income was $10,000 at the beginning of 2024, what would be the Accumulated Other Comprehensive Income at the end of the 2024?

The bookkeeper for Village Corp has prepared the following balance sheet as at December 31, 2024: Village Corp Balance Sheet December 31, 2024 Cash $ 93,000 Current Liabilities $ 250,000 Accounts Receivable (net) 55,600 Long-term Liabilities 600,000 Inventories 70,000 Shareholders’ Equity 63,600 Investments 30,000 Land 200,000 Building (net) 450,000 Tradename (net) 15,000 $913,600 $913,600 The following additional information is provided: 1. The cash balance includes: Petty cash fund $ 100 T-bill 5,000 Cash advance to employee, payable on demand 2,000 Saving Account at TD Bank 35,500 Money market fund 10,000 10333333,00038,000 Chequing account at the Bank of Montreal 41,600 Bank overdraft at the Scotia Bank (no other accounts are held at this bank) BankCIBC) (1,200) Total $ 93,000 2. The allowance for doubtful accounts $8,400. 3. The net realizable value of the inventory that is included in the Balance Sheet is $65,000. • Inventories do not include $45,000 of merchandise that was in transit at December 31. • Of this amount, $20,000 was bought from ONG Inc. with terms f.o.b. destination point (the net realizable value of this inventory was $34,000) • The remainder of inventory that cost $20,000 was shipped from Village to Park Inc. for consignment. The net realizable value for this inventory is $36,000. 4. The investments section includes the following: • An interest bearing note receivable of $10,000 that was issued on October 1st, 2024 bearing interest at 3% and is due on October 1, 2025 • Long-term FV-OCI investment $8,000 carrying value (fair value $12,000 at December 31,2024). Management plans on holding on to these investments for a number of years. • FV-NI Investment 1,000 common shares of Landon Inc. purchased at $12.00 per share (fair value $9.50 per share at December 31, 2024). Village expected to sell the shares as soon as the market price increases more next year. 5. The land balance includes: land used for operations and recorded at its cost of $200,000 (the appraisal value of the land in 2024 was $500,000). The company doesn’t use the revaluation model. 6. The building originally cost $800,000. Depreciation for 2024 has already been recorded. Scotiabank has pledged the building as security for their $600,000 loan to Village Corp. (collateral), the loan bears annual interests at 8%. 7. The tradename originally cost $24,000 and is being amortized over 6 years on a straight-line basis. Amortization for 2024 had already been recorded. Required: Part 1 The company is a Canadian public company. Restate the asset side of Village’s Statement of Financial Position at December 31, 2024 in good form. The categories are: Current Assets, Long-term Investments, Property, Plant & Equipment and Intangible Assets. Part 2 Including any disclosure requirements. Part 3 Based on any changes to the value of the assets what account would be included in the Statement of Earnings and what section would each of the items be included in? Do not include Amortization Expense or Bad Debt Expense. Part 4 Assuming the Accumulated Other Comprehensive Income was $10,000 at the beginning of 2024, what would be the Accumulated Other Comprehensive Income at the end of the 2024?

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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Question

The bookkeeper for Village Corp has prepared the following balance sheet as at December 31, 2024:

Village Corp

Balance Sheet

December 31, 2024

Cash $ 93,000 Current Liabilities $ 250,000

Accounts Receivable (net) 55,600 Long-term Liabilities 600,000

Inventories 70,000 Shareholders’ Equity 63,600

Investments 30,000

Land 200,000

Building (net) 450,000

Tradename (net) 15,000

$913,600 $913,600

The following additional information is provided:

1. The cash balance includes:

Petty cash fund $ 100

T-bill 5,000

Cash advance to employee, payable on demand 2,000

Saving Account at TD Bank 35,500

Money market fund 10,000 10333333,00038,000

Chequing account at the Bank of Montreal 41,600

Bank overdraft at the Scotia Bank (no other accounts are held at this bank) BankCIBC) (1,200)

Total $ 93,000

2. The allowance for doubtful accounts $8,400.

3. The net realizable value of the inventory that is included in the Balance Sheet is $65,000.

• Inventories do not include $45,000 of merchandise that was in transit at December 31.

• Of this amount, $20,000 was bought from ONG Inc. with terms f.o.b. destination point (the net realizable value of this inventory was $34,000)

• The remainder of inventory that cost $20,000 was shipped from Village to Park Inc. for consignment. The net realizable value for this inventory is $36,000.

4. The investments section includes the following:

• An interest bearing note receivable of $10,000 that was issued on October 1st, 2024 bearing interest at 3% and is due on October 1, 2025

• Long-term FV-OCI investment $8,000 carrying value (fair value $12,000 at December 31,2024). Management plans on holding on to these investments for a number of years.

• FV-NI Investment 1,000 common shares of Landon Inc. purchased at $12.00 per share (fair value $9.50 per share at December 31, 2024). Village expected to sell the shares as soon as the market price increases more next year.

5. The land balance includes: land used for operations and recorded at its cost of $200,000 (the appraisal value of the land in 2024 was $500,000). The company doesn’t use the revaluation model.

6. The building originally cost $800,000. Depreciation for 2024 has already been recorded.

Scotiabank has pledged the building as security for their $600,000 loan to Village Corp. (collateral), the loan bears annual interests at 8%.

7. The tradename originally cost $24,000 and is being amortized over 6 years on a straight-line basis. Amortization for 2024 had already been recorded.

Required:

Part 1

The company is a Canadian public company. Restate the asset side of Village’s Statement of

Financial Position at December 31, 2024 in good form. The categories are: Current Assets,

Long-term Investments, Property, Plant & Equipment and Intangible Assets.

Part 2

Including any disclosure requirements.

Part 3

Based on any changes to the value of the assets what account would be included in the Statement of Earnings and what section would each of the items be included in? Do not include Amortization Expense or Bad Debt Expense.

Part 4

Assuming the Accumulated Other Comprehensive Income was $10,000 at the beginning of 2024, what would be the Accumulated Other Comprehensive Income at the end of the 2024?

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