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W4 - SW1 - Statement of Financial Position

The document provides the trial balance and other financial information for Madam Corporation as of December 31, 2019. It includes account balances for assets, liabilities, equity, revenues and expenses. The statement requests preparation of Madam Corporation's statement of financial position with supporting notes or schedules, specifically starting with Note 6.

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Jere Mae Maranan
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635 views2 pages

W4 - SW1 - Statement of Financial Position

The document provides the trial balance and other financial information for Madam Corporation as of December 31, 2019. It includes account balances for assets, liabilities, equity, revenues and expenses. The statement requests preparation of Madam Corporation's statement of financial position with supporting notes or schedules, specifically starting with Note 6.

Uploaded by

Jere Mae Maranan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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De La Salle Lipa As of December 31, 2019, the following account balances were provided by

Intermediate Accounting 3 MADAM CORPORATION. Prepare the statement of financial position with
Statement of Financial Position supporting schedules or notes (start with Note 6). Refer to FS rubrics.

Case 1: Current vs Non-Current


The following trial balance of Parsley Inc. as at December 31, 2019 has been Notes receivable – trade P 2,500,000
adjusted except for income tax payable. Notes payable – trade 1,500,000
Income tax payable 250,000
Accounts Debit Credit Patent 150,000
Cash on hand awaiting deposit 500,000
Cash P 500,000 Accounts receivable -trade 2,000,000
Accounts receivable, net 3,500,000 Finished goods 900,000
Cost in excess of billings on long-term contracts 1,600,000 Claims receivable 200,000
Billings in excess of costs on long term P 600,000 Franchise 200,000
contracts 450,000 Goods in process 400,000
Prepaid taxes 1,470,000 Goodwill 500,000
Property, plant and equipment, net 1,610,000 Factory supplies 100,000
Note payable, non-current 750,000 Office supplies 40,000
Ordinary share capital 2,000,000 Cash in bank 1,400,000
Share premium 900,000 Sinking fund 250,000
Unappropriated retained earnings 160,000 Raw materials 300,000
Appropriated retained earnings 6,680,000 Ordinary shares, par P100 8,000,000
Earnings from long-term contracts 5,180,000 Time deposit, due in 60 days 1,000,000
Costs and expenses Investment in subsidiary 1,200,000
Allowance for uncollectible accounts 200,000
Totals P 12,700,000 P 12,700,000 Land 2,500,000
Withholding tax payable 150,000
Other financial data for the year ended December 31, 2019 are as follows: SSS payable 300,000
 Parsley uses the percentage-of-completion method to account for long-term Accumulated depreciation – building 1,500,000
construction contracts for financial statement and income tax purposes. All Accumulated depreciation – machinery 1,000,000
receivables on these contracts are considered to b collectible within twelve Refundable deposit of customers (long term) 100,000
months. Prepaid insurance 180,000
 During 2019, estimated tax payments of P450,000 were charged to prepaid Investment in bonds 500,000
taxes. Parsley has not recorded income tax expense. There were no Bonds payable 6,000,000
temporary or permanent differences, and Parsley’s tax rate is 30%. Building 6,000,000
Machinery 3,000,000
Compute for the following, showing your solution in good form: Advances to officers, collectible in 2018 1,800,000
1. Total current assets Share premium 200,000
2. Total non-current liabilities Unappropriated retained earnings 3,860,000
3. Total retained earnings Accrued interest on notes receivable 120,000
Deferred tax liability 100,000
Accounts payable 2,500,000
Case 2: Classified Financial Position Financial asset at fair value through profit or loss 400,000
Cash surrender value 120,000
Appropriated retained earnings 500,000
Warranty payable 300,000

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