Assignment

in
Financial Accounting

Jane B. Evangelista
BSBA-2B
 Simple Company

State of Financial Position

December 31, 2020

Asset

Current Asset

Cash 420, 000

Claim Receivable 20,000

Finished Goods 400,000

Goods in Process 600,000

Prepaid Insurance 20,000

Raw materials 200,000

Trading Securities 250,000

Accounts Receivable 500,000

Allowances for doubtful accounts

Advances from Supplier 50, 000

Notes receivables 150,000

Total Current Assets: 2,560,000

Non- Current Assets

Land 1,500,000

Machinery 2,000,000

Accum. Depn. Machinery 1,300,000

Building 4,000,000

Accum. Depn. Bldg 1,600,000

Franchise 200,000

Tools 40,000

Goodwill 100,000

Plant Expansion Fund 500,000

Investment in bonds 1,500,000

Total Non-Current Assets: 6,940,000

Total current and Non-Current Assets: 9,500,000

Liabilities and Equity

Liabilities Serial bonds payable ( 500,000 due every July 1 each year) 2,500,000

Employees income tax payable 20,000

Notes payable 100,000

Accrued expenses 30,000

Accrued interest on notes payable 10,000

Income tax payable 60,000

Accounts payable 300,000

Advances from customers 100,000

Total Liabilities 3,120,000

Equity

Share Capital 5,000,000

Share Premium 500,000

Retained Earnings 880,000

Total Equity 6,380,000

Total Liabilities and Equity 9,500,000