Reference no: EM132652536
Pina Colada Corp. has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion:
PINA COLADA CORP.
Statement of Financial Position
For the Year Ended December 31, 2020b
Current assets
Cash (net of bank overdraft of $40,000) ..............$400,000
Accounts receivable (net).................. 416,000
Inventory at the lower of cost and net realizable value.................... 551,000
FV-NI investments (at cost-fair value $230,000)....................280,000
Property, plant, and equipment
Buildings (net)............740,000
Equipment (net)................. 280,000
Land held for future use.........205,000
Intangible assets
Goodwill..............90,000
Investment in bonds to collect cash flows, at amortized cost.................106,000
Prepaid expenses..................27,000
Current liabilities
Accounts payable............. 255,000
Notes payable (due next year)..............185,000
Pension obligation................83,000
Rent payable....................57,000
Long-term liabilities
Bonds payable..............748,000
Shareholders' equity
Common shares, unlimited authorized, 450,000 issued..................450,000
Contributed surplus................370,000
Retained earnings ?
Question 1: What is the revised statement of financial position using the available information. Assume that the bank overdraft relates to a bank account held at a different bank from the account with the cash balance. Assume that the accumulated depreciation balance for the buildings is $320,000 and that the accumulated depreciation balance for the equipment is $255,000. The allowance for doubtful accounts has a balance of $28,000. The pension obligation is considered a long-term liability. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)