Reference no: EM132949287
The Statement of Financial Position of Polo Corporation was presented to you together with some notation in its preparation. You are to correct it if there are deficiencies, and answer the queries made by the major shareholder.
Polo Corporation
Statement of Financial Position
December 31, 2020
ASSETS
LIABILITIES AND EQUITY
Current Assets:
Current liabilities:
Cash 250,000
Accounts Payable 68,000
Trading Securities 160,000
Other Current liabilities 40,000
Accounts Receivable, net 427,000
Total Current liabilities 108,000
Inventory 620,000
Long Term Liabilities 655,000
Other Current Assets 284,000
Total Current Assets 1,741,000
Total Liabilities 763,000
Non-Current Assets:
Share Capital 1,000,000
Property, Plant and Eqpt., net 1,296,000
Retained Earnings 1,636,000
Treasury Shares 90,000
Total Equity 2,636,000
Other Non-Current Assets 272,000
Total Non-Current Assets 1,658,000
TOTAL ASSETS 3,399,000
TOTAL LIABILITIES AND EQUITY 3,399,000
Additional Information:
a. Cash includes P 80,000 that has been restricted for the purchase of manufacturing equipment.
b. Trading securities include P 55,000 of stock that was purchased in order to give significant influence and a seat in the board.
c. Other current assets include a P 80,000 advance to the President of the company. No due date has been set.
d. Long term liabilities also include bonds payable of P 200,000, of this amount, P50,000 represents bonds scheduled to be redeemed in 2021.
e. Long term liabilities also include a P 140,000 bank loan, which will be demandable by May 15, 2021.
f. On December 21, dividends in the amount of P 300,000 were declared to be paid to shareholders of record January 25. These dividends have not been reflected in the financial statements.
g. Cash in the amount of P 380,000 has been placed in a restricted fund for the redemption of preference shares in 2022. Both cash and the shares have been removed from the statement of financial position.
h. Property, Plant and Equipment includes land costing P 160,000 that is being held for investment purposes and that is being scheduled to be sold in 2021.
Problem 1. How much is the total current assets? (QUESTION IN THIS NUMBER)
Problem 2. How much is the total Non-Current Assets?
Problem 3. How much is the total Current liabilities?
Problem 4. How much is the total Non-Current liabilities?
Problem 5. How much is the ending balance of Retained Earnings?
Problem 6. How much is the total Other Non-Current Assets?
Problem 7. How much is the net ending balance of Property, Plant and Equipment?
Problem 8. How much is the balance of Retained Earnings?
Problem 9. How much is the total Other Non-Current liabilities?
Problem 10. How much is the balance of Other Current Assets?