Reference no: EM132490086

Summa Company revealed the following account balances on December 31, 2017

Accounts payable                                                                      1,000,000

Accounts receivable, net of allowance for doubtful accounts                50,000                  600,000

Accrued taxes                                                                           50,000

Accrued interest receivable                                                              30,000

Authorized share capital,                                                              50,000 shares,                   100 par 5,000,000

Building, net of accumulated depreciation of                                      2,500,000                         3,000,000

Cash on hand                                                                                 50,000

Cash in bank                                                                                650,000

Bond sinking fund                                                                        2,000,000

Furniture and equipment, net accumulated depreciation of                  900,000                         1,500,000

Inventoryb                                                                              1,200,000

Iinvestment property                                                                    700,000

Land                                                                                       1,000,000

Deferred tax liability                                                                   650,000

Bonds payable due june 30,2018                                                 2,000,000

Notes payablen                                                                       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:

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