Presented below are ledger balances of Modern Furniture Group Company Limited at December 31, 2012. Cash...

 

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Presented below are ledger balances of Modern Furniture Group Company Limited at December 31, 2012. Cash in hand Cash at bank Accounts Accounts receivable Allowance for doubtful account. Inventories Trading securities-equity investment in JJ company Available-for-sale securities-8% bond due 31/12/2015 Unrealized gain on change in value of available-for- sale securities Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Computer software, net Balance (Baht) 250,000 500,000 300,000 30,000 575,000 120,000 80,000 20,000 1,000,000 2,000,000 200,000 600,000 50,000 40,000 Additional information: 1. The company directly records changes in value of investments in the account themselves. Both items of investments have just been bought during 2012. The original cost of the investment in JJ Company was 110,000 baht. 2. Bad debt is reserved for 10% of account receivables. 3. Inventories are valued at first-in, first-out basis and at lower of cost or net realizable value. The net realizable value at December 31 was 580,000 baht. 4. Land is stated at cost. Building and equipment are stated at cost less accumulated depreciation and allowance for loss on impairment of assets (if any). Depreciation of building and equipment is calculated by reference to their costs on the straight-line basis over the following estimated useful lives: Useful Life Building 20 years 10 years Equipment 5. Computer software has useful life of 5 years and no residual value. The original cost was 50,000 baht and it was bought on January 1, 2012. The company also uses straight-line method to amortize the computer software. Required: Use the form below and complete Statements of Financial Position and Notes to Financial Statements at December 31, 2012. You can assume other information, if needed, but please clearly inform it. All accounts must be presented but some accounts may appear in Notes to Financial Statements only. Presented below are ledger balances of Modern Furniture Group Company Limited at December 31, 2012. Cash in hand Cash at bank Accounts Accounts receivable Allowance for doubtful account. Inventories Trading securities-equity investment in JJ company Available-for-sale securities-8% bond due 31/12/2015 Unrealized gain on change in value of available-for- sale securities Land Building Accumulated depreciation-building Equipment Accumulated depreciation-equipment Computer software, net Balance (Baht) 250,000 500,000 300,000 30,000 575,000 120,000 80,000 20,000 1,000,000 2,000,000 200,000 600,000 50,000 40,000 Additional information: 1. The company directly records changes in value of investments in the account themselves. Both items of investments have just been bought during 2012. The original cost of the investment in JJ Company was 110,000 baht. 2. Bad debt is reserved for 10% of account receivables. 3. Inventories are valued at first-in, first-out basis and at lower of cost or net realizable value. The net realizable value at December 31 was 580,000 baht. 4. Land is stated at cost. Building and equipment are stated at cost less accumulated depreciation and allowance for loss on impairment of assets (if any). Depreciation of building and equipment is calculated by reference to their costs on the straight-line basis over the following estimated useful lives: Useful Life Building 20 years 10 years Equipment 5. Computer software has useful life of 5 years and no residual value. The original cost was 50,000 baht and it was bought on January 1, 2012. The company also uses straight-line method to amortize the computer software. Required: Use the form below and complete Statements of Financial Position and Notes to Financial Statements at December 31, 2012. You can assume other information, if needed, but please clearly inform it. All accounts must be presented but some accounts may appear in Notes to Financial Statements only.

Answer rating: 100% (QA)

Modern Furniture Group Company Limited Statements of Financial Position As at December 31 2012 Assets Current assets Cash and cash equivalents Baht 25... View the full answer