Reference no: EM132490061
PREPARATION OF FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION
STATEMENT OF FINANCIAL PERFORMANCE
1. ISM Industries provided the following account balance on December 31, 2019
Share capital 5,000,000.00
Share premium 500,000.00
Retained Earnings
880,000.00
Serial bonds payable (Php500,000.00 due
every July 1 of each year) 2,500,000.00
Employees income tax payable 20,000.00
Notes payable 100,000.00
Accrued expenses 30,000.00
Accrued interest on note payable 10,000.00
Income tax payable 60,000.00
Allowance for doubtful accounts 50,000.00
Advances from customers 100,000.00
Accounts receivable 500,000.00
Accumulated depreciation - Building 1,600,000.00
Accumulated depreciation - Machinery 1,300,000.00
Investment in Bonds 1,500,000.00
Land 1,500,000.00
Machinery 2,000,000.00
Factory Supplies 50,000.00
Notes Receivable 150,000.00
Building 4,000,000.00
Cash 420,000.00
Claim receivable 20,000.00
Finished Goods 400,000.00
Franchise 200,000.00
Goods in process 600,000.00
Prepaid insurance 20,000.00
Raw Materials 200,000.00
Trading Securities 250,000.00
Tools 40,000.00
Goodwill 100,000.00
Plant expansion fund 500,000.00
Accounts payable 300,000.00
Required:
Question 1: Prepare a properly classified statement of financial position on December 31, 2019.