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    Problem A - SFP For Upload

    Uploaded by

    Luisa Janelle Boquiren
    The document provides an example statement of financial position for Green Company as of December 31, 2019 along with supporting notes. The statement includes current assets of P834,250, non-current assets of P2,635,000, total assets of P3,469,250, current liabilities of P507,250, non-current liabilities of P800,000, total liabilities of P1,307,250, and shareholders' equity of P2,162,000. The notes provide additional details on trade receivables, property and equipment, intangible assets, trade payables, reserves, and retained earnings.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Problem A - SFP For Upload

    Uploaded by

    Luisa Janelle Boquiren
    307 views3 pages
    The document provides an example statement of financial position for Green Company as of December 31, 2019 along with supporting notes. The statement includes current assets of P834,250, non-current assets of P2,635,000, total assets of P3,469,250, current liabilities of P507,250, non-current liabilities of P800,000, total liabilities of P1,307,250, and shareholders' equity of P2,162,000. The notes provide additional details on trade receivables, property and equipment, intangible assets, trade payables, reserves, and retained earnings.

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    Problem a - SFP for Upload

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    The document provides an example statement of financial position for Green Company as of December 31, 2019 along with supporting notes. The statement includes current assets of P834,250, non-current assets of P2,635,000, total assets of P3,469,250, current liabilities of P507,250, non-current liabilities of P800,000, total liabilities of P1,307,250, and shareholders' equity of P2,162,000. The notes provide additional details on trade receivables, property and equipment, intangible assets, trade payables, reserves, and retained earnings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    307 views3 pages

    Problem A - SFP For Upload

    Uploaded by

    Luisa Janelle Boquiren
    The document provides an example statement of financial position for Green Company as of December 31, 2019 along with supporting notes. The statement includes current assets of P834,250, non-current assets of P2,635,000, total assets of P3,469,250, current liabilities of P507,250, non-current liabilities of P800,000, total liabilities of P1,307,250, and shareholders' equity of P2,162,000. The notes provide additional details on trade receivables, property and equipment, intangible assets, trade payables, reserves, and retained earnings.

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    CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING

    MODULE 4: PREPARING THE FINANCIAL STATEMENTS

    A. Statement of Financial Position and Notes to the Financial Statements. The December
    31, 2019 statement of financial position accounts of GREEN Company are shown
    below in alphabetical order.

    Accounts payable P 236,000 CL


    Accounts receivable 115,000 CA
    Accumulated amortization – patents 22,000 (NCA)
    Accumulated amortization – trademarks 17,000 (NCA)
    Accumulated depreciation – buildings 530,000 (NCA)
    Accumulated depreciation – equipment 351,000 (NCA)
    Allowance for bad debts 8,000 (CA)
    Appropriated retained earnings 45,000 Equity
    Bonds payable (due 2022) 800,000 NCL
    Buildings 1,440,000 NCA
    Cash and cash equivalents 86,250 CA
    Notes payable (due 3 months) 50,000 CL
    Equipment 624,000 NCA
    Income tax payable 150,000 CL
    Inventory 322,000 CA
    Investments at fair value through profit or loss 250,000 CA
    Investments at fair value through other comprehensive income 61,000 NCA
    Investment property 1,000,000 NCA
    Land 250,000 NCA
    Ordinary share capital, P10 par 1,300,000 Equity
    Patents 120,000 NCA
    Preference share capital, P100 par 210,000 Equity
    Prepaid expenses 69,000 CA
    Salaries payable 20,000 CL
    Share dividends distributable 24,000 Equity
    Share premium – preference 81,000 Equity
    Share premium – ordinary 240,000 Equity
    SSS premiums payable 21,250 CL
    Trademarks 60,000 NCA
    Unappropriated retained earnings 262,000 Equity
    Withholding taxes payable 30,000 CL

    Required: Prepare a properly classified statement of financial position for Green


    Company as of December 31, 2019 with appropriate notes to support the line items
    presented on the face of the financial statement.

    1|Page
    Solution to Problem A

    GREEN Company Statement of


    Financial Position December
    31, 2019
    (in Philippine Peso)

    ASSETS

    Note

    Current assets
    Cash and cash equivalents P 86,250
    Investments at fair value through
    profit or loss 250,000
    Trade and other receivables – net 1 107,000
    Inventory 322,000
    Prepaid expenses 69,000

    Total current assets 834,250

    Non-current assets
    Property, plant and equipment 2 P 1,433,000
    Investment property 1,000,000
    Intangible assets 3 141,000
    Investment at fair value through
    other comprehensive income 61,000

    Total non-current assets 2,635,000

    TOTAL ASSETS P 3,469,250

    LIA BI LITIES A ND SHAREHO LDERS’ EQ UIT Y

    Current liabilities
    Trade and other payables 4 P 507,250

    Non-current liabilities
    Bonds payable, due 2022 800,000

    Total liabilities 1,307,250

    Shar eholder s’ equity


    Preference share capital P 210,000
    Ordinary share capital 1,300,000
    Share dividends distributable 24,000
    Reserves 5 321,000
    Retained earnings 6 307,000

    Total shareholders’ equity 2,162,000

    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY P 3,469,250

    2|Page
    Notes to the Financial Statements:

    Note 1 – Trade and other receivables - net

    Accounts receivable P 115,000


    Allowance for doubtful accounts ( 8,000)
    Amortized cost of accounts receivable P 107,000

    Note 2 – Property, Plant and Equipment – net

    Land Building Equipment Total


    Cost P 250,000 P 1,440,000 P 624,000 P 2,314,000
    Accumulated - ( 530,000) ( 351,000) ( 881,000)
    depreciation
    Carrying P 250,000 P 910,000 P 273,000 P 1,433,000
    value

    Note 3 – Intangible Assets

    Patents Trademarks Total


    Cost P 120,000 P 60,000 P 180,000
    Accumulated ( 22,000) ( 17,000) ( 39,000)
    amortization
    Carrying value P 98,000 P 43,000 P 141,000

    Note 4 – Trade and Other Payables

    Accounts payable P 236,000


    Income tax payable 150,000
    Notes payable 50,000
    Withholding taxes payable 30,000
    SSS Premiums payable 21,250
    Salaries payable 20,000
    Total trade and other payables P 507,250

    Note 5 – Reserves

    Share premium – preference P 81,000


    Share premium – ordinary 240,000
    Total reserves P 321,000

    Note 6 – Retained earnings

    Appropriated retained earnings P 45,000


    Unappropriated retained earnings 262,000
    Total retained earnings P 307,000

    3|Page

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