Prepare the adjusted statement of financial position CASE 1In connection with your financial statement audit of Siargao, Inc., you were provided with the followingstatement of financial position as of December 31, 20x1:Siargao, Inc.Statement of Financial PositionDecember 31, 20x1AssetsLiabilities and EquityCurrent assetsCurrent LiabilitiesP250,000160,000427,000620,000CashAccounts PayableOther current liabilitiesP68,00040,000P108,000Trading securitiesAccounts Receivable, netInventoryOther Current AssetsTotal284,000P1,741,000Long term liabilitiesTotal liabilities655,000P763,000TotalNoncurrent assets:Property, plant, and equipment, netTreasury sharesOther noncurrent assetsEquityShare CapitalRetained EarningsP1,296,00090,000P1,000,0001,636,000272,000P1,658,000TotalTotal EquityP2,636,000TOTAL ASSETSP3,399,000TOTAL LIABILITIES & EQUITY P3,399,000The following additional information relates to December 31, 20x1 statement of financial position:a) Cash includes P80,000 that has been restricted for the purchase of manufacturing equipment (anoncurrent asset)b) Trading securities include P55,000 of shares purchased to give the company a significant influenceand a seat on the board of directors of a major supplier.c) Other current assets include advances to the president of the company amounting to P80,000. Nodue date has been set.d) Long-term liabilities also include bonds payable amounting to P200,000, P50,000 of which isscheduled to be redeemed in 20x2.e) Long-term liabilities also include a bank loan of P140,000. On May 15, 20x2, the loan will becomedue on demand.f) On December 21, dividends amounting to P300,000 were declared to be paid to shareholders ofrecord on January 25, 20x2. These dividends have not been reflected in the financial statements.g) Cash amounting to P380,000 has been placed in a restricted fund for the redemption of preferenceshares in 20x3. Both the cash and the shares have been removed from the statement of financialposition.h) Property, plant, and equipment includes land costing P160,000 held for investment purposes andscheduled to be sold in 20x2.

Given: To prepare the financial position of adjusted statement is given as,

Answered: of financial position

Business

Accounting

of financial position

Accounting Information Systems

11th Edition

ISBN:9781337552127

Author:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Publisher:Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill

Chapter9: Controlling Information Systems: Business Process And Application Controls

Section: Chapter Questions

Problem 4P

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In connection with your financial statement audit of Siargao, Inc., you were provided with the following statement of financial position as of December 31, 20x1: Siargao, Inc. Statement of Financial Position December 31, 20x1 Assets Liabilities and Equity Current assets Current Liabilities Cash P250,000 Accounts Payable P68,000 Trading securities 160,000 Other current liabilities 40,000 Accounts Receivable, net 427,000 Total P108,000 Inventory 620,000 Other Current Assets 284,000 Long term liabilities 655,000 Total P1,741,000 Total liabilities P763,000 Noncurrent assets: Equity Property, plant, and equipment, net P1,296,000 Share Capital P1,000,000 Treasury shares 90,000 Retained Earnings 1,636,000 Other noncurrent assets 272,000 Total P1,658,000 Total Equity…
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