Reference no: EM132976865

Summa Company revealed the following account balances on December 31, 2020:

Accounts payable 1,000,000

Accounts receivable, net of allowance for doubtful accounts P50,000 600,000

Accrued taxes 50,000

Accrued interest receivable 30,000

Authorized share capital, 50,000 shares, P100 par 5,000,000

Building, net of accumulated depreciation of P2,500,000 3,000,000

Cash on hand 50,000

Cash in bank 650,000

Band sinking fund 2,000,000

Furniture and equipment, net of accumulated depreciation of P900,000 1,500,000

Inventory 1,200,000

Investment property 700,000

Land 1,000,000

Deferred tax liability 650,000

Bonds payable due June 30, 2021 2,000,000

Notes payable 850,000

Notes receivable 200,000

Patent 370,000

Other accrued liabilities 150,000

Prepaid expenses 100,000

Share premium 300,000

Retained earnings appropriated for contingencies 200,000

Retained earnings 2,700,000

Share subscription receivable 500,000

Subscribed share capital, 2,000 shares 1,000,000

Unissued share capital 2,000,000

Required:

Problem 1: Prepare a statement of financial position, presented and classified according to generally accepted accounting principles with appropriate notes.