The trial balance of Pina Colada Ltd. at December 31, 2020, follows: Debits Credits Cash $235,000 Sales revenue $9,035,000 FV-NI investments (at fair value) 213,000 Cost of goods sold 4,900,000 Bond investment at amortized cost 479,000 FV—OCI investments (fair value $465,000) 415,000 Notes payable (due in six months) 106,000 Accounts payable 795,000 Selling expenses 2,560,000 Investment income or loss* 14,000 Land 370,000 Buildings 2,240,000 Dividends payable 46,000 Income tax payable 112,000 Accounts receivable 655,000 Accumulated depreciation—buildings 322,000 Allowance for doubtful accounts 42,000 Administrative expenses 930,000 Interest expense 381,000 Inventory 877,000 Gain on disposal of land 50,000 Dividends 50,000 Notes payable (due in five years) 930,000 Equipment 760,000 Bonds payable (due in three years) 3,000,000 Accumulated depreciation—equipment 74,000 Intangible assets—franchises (net) 320,000 Common shares 849,000 Intangible assets—patents (net) 365,000 Retained earnings 290,000 Accumulated other comprehensive income 85,000 Totals $15,750,000 $15,750,000 * The investment income or loss relates to the FV-NI investments. (a) Prepare a classified statement of financial position as at December 31, 2020. Ignore income taxes. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...

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The trial balance of Pina Colada Ltd. at December 31, 2020, follows:

	Debits	Credits
Cash	$235,000
Sales revenue			$9,035,000
FV-NI investments (at fair value)	213,000
Cost of goods sold	4,900,000
Bond investment at amortized cost	479,000
FV—OCI investments (fair value $465,000)	415,000
Notes payable (due in six months)			106,000
Accounts payable			795,000
Selling expenses	2,560,000
Investment income or loss^*			14,000
Land	370,000
Buildings	2,240,000
Dividends payable			46,000
Income tax payable			112,000
Accounts receivable	655,000
Accumulated depreciation—buildings			322,000
Allowance for doubtful accounts			42,000
Administrative expenses	930,000
Interest expense	381,000
Inventory	877,000
Gain on disposal of land			50,000
Dividends	50,000
Notes payable (due in five years)			930,000
Equipment	760,000
Bonds payable (due in three years)			3,000,000
Accumulated depreciation—equipment			74,000
Intangible assets—franchises (net)	320,000
Common shares			849,000
Intangible assets—patents (net)	365,000
Retained earnings			290,000
Accumulated other comprehensive income			85,000
Totals	$15,750,000		$15,750,000

^* The investment income or loss relates to the FV-NI investments.

(a)

Prepare a classified statement of financial position as at December 31, 2020. Ignore income taxes. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

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