The statement of financial position of Concord Corporation follows for the current year, 2020:

CONCORD CORPORATION Statement of Financial Position December 31, 2020
Current assets		$533,500		Current liabilities		$418,000
Investments		704,000		Long-term liabilities		1,056,000
Property, plant, and equipment		1,892,000		Shareholders' equity		1,947,000
Intangible assets		291,500
		$3,421,000				$3,421,000

The following additional information is available:
 

1.		The current assets section includes the following: cash $165,000; accounts receivable $187,000, less $11,000 allowance for doubtful accounts; inventory $198,000; and unearned revenue $5,500. The cash balance is composed of $209,000, less a bank overdraft of $44,000 (at a separate financial institution). Inventory is stated at the lower of FIFO cost and net realizable value.
2.		The investments section includes the following: note receivable from a related company, due in 2026, $44,000; FV-NI investments in shares $88,000 (fair value $88,000); FV-OCI investments in shares $137,500 (fair value $170,500); bond sinking fund $275,000; and patents $126,500, net of accumulated amortization.
3.		Property, Plant, and Equipment include buildings $1,144,000, less accumulated depreciation $396,000; equipment $495,000, less accumulated depreciation $198,000; land $550,000; and land held for future use $297,000.
4.		Intangible Assets include franchise, net of accumulated amortization, $291,500.
5.		Current liabilities include the following: accounts payable $154,000; notes payable, short-term $88,000, long-term $132,000; and income tax payable $44,000.
6.		Long-term liabilities are composed solely of 7% bonds payable issued at a discount, due in 2028.
7.		Shareholders' equity has 70,000 preferred shares (200,000 authorized), which were issued for $495,000, and 110,000 common shares (unlimited number authorized), which were issued at an average price of $10 per share. In addition, the corporation has retained earnings of $319,000 and accumulated other comprehensive income of $33,000.

(a) Prepare a statement of financial position in good form. (Adjust the amounts in each SFP classification based on the additional information.) (List Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Equipment.)

 

Transcribed Image Text:

Assets Current Assets Cash 209,000 Land 533,500 Accounts Receivable 187,000 Less v Allowance for Doubtful Acc 11,000 176,000 Inventory 198,000 Total Current Assets 1,116,500 Total Intangible Assets P P =P-P Assets Current Assets Cash 209,000 Land 533,500 Accounts Receivable 187,000 Less v Allowance for Doubtful Acc 11,000 176,000 Inventory 198,000 Total Current Assets 1,116,500 Total Intangible Assets P P =P-P

Answer rating: 100% (QA)

CONCORD CORPORATION Statement of Financial Position December 31 2020 Current Assets Cash 221000 Accounts Receivable 176000 Inventory 198000 Unearned R... View the full answer