The statement of financial position of Ayayai Corporation as at December 31, 2023, is as follows:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The statement of financial position of Ayayai Corporation as at December 31, 2023, is as follows: Ayayal Corporation Statement of Financial Position December 31, 2023 Assets Goodwill (Note 1) $31,500 Buildings (Note 2) 738,000 Inventory 140,445 Investments-trading (Note 3) 45,000 Land 427,500 Accounts receivable 76,500 Investments in shares (FV-OCI) (Note 3) 39,150 Cash 79,155 Assets allocated to trustee for plant expansion Cash 54,000 Treasury notes, at cost and fair value 62,100 $1,693,350 Equities Notes payable (Note 4) Common shares, unlimited authorized, 500,000 issued Retained earnings Accounts payable Appreciation capital (Note 2) Income tax payable Reserve for depreciation of building $270,000 517,500 317,700 113,400 256,500 33,750 184,500 $1,693,350 Note 1: Goodwill in the amount of $31,500 was recognized because the company believed that the carrying amount of assets was not an accurate representation of the company's fair value. The gain of $31,500 was credited to Retained Earnings. Note 2: Buildings are stated at cost, except for one building that was recorded at its appraised value because management determined the building to be worth more than originally paid at acquisition. The excess of the appraisal value over cost was $256,500. Depreciation has been recorded based on cost. Note 3: Investments-trading are FV-NI investments and have a fair value of $33,750. Investments in shares (FV-OCI) have a fair value of $90,000. Both investments are currently recorded at cost. Note 4: Notes payable are long term except for the current principal instalment due of $45,000. (a) Prepare a corrected classified statement of financial position in good form. The notes above are for information only. Assume that you have decided not to use the revaluation model for property, plant, and equipment. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings.) Current Assets Cash FV-NI Investments Accounts Receivable Inventory Total Current Assets Long-Term Investments FV-OCI Investments Assets Allocated to Trustee for Expansion Cash Treasury Notes Total Long-Term Investments Property, Plant, and Equipment Land AYAYAI CORPORATION Statement of Financial Position December 31, 2023 Assets $ 54000 62100 $ 79155 33750 76500 140445 90000 116100 427500 $ 329850 206100 Buildings 994500 Accumulated Depreciation - Equipment 256500 738000 1165500 Total Assets 1701450 Current Llabllltles Accounts Payable Current Portion of Notes Payable Income Tax Payable Total Current Liabilities Long-Term Liabilities Notes Payable Total Liabilities Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Liabilities and Shareholders' Equity $ 113400 45000 33750 500000 286200 192150 270000 462150 The statement of financial position of Ayayai Corporation as at December 31, 2023, is as follows: Ayayal Corporation Statement of Financial Position December 31, 2023 Assets Goodwill (Note 1) $31,500 Buildings (Note 2) 738,000 Inventory 140,445 Investments-trading (Note 3) 45,000 Land 427,500 Accounts receivable 76,500 Investments in shares (FV-OCI) (Note 3) 39,150 Cash 79,155 Assets allocated to trustee for plant expansion Cash 54,000 Treasury notes, at cost and fair value 62,100 $1,693,350 Equities Notes payable (Note 4) Common shares, unlimited authorized, 500,000 issued Retained earnings Accounts payable Appreciation capital (Note 2) Income tax payable Reserve for depreciation of building $270,000 517,500 317,700 113,400 256,500 33,750 184,500 $1,693,350 Note 1: Goodwill in the amount of $31,500 was recognized because the company believed that the carrying amount of assets was not an accurate representation of the company's fair value. The gain of $31,500 was credited to Retained Earnings. Note 2: Buildings are stated at cost, except for one building that was recorded at its appraised value because management determined the building to be worth more than originally paid at acquisition. The excess of the appraisal value over cost was $256,500. Depreciation has been recorded based on cost. Note 3: Investments-trading are FV-NI investments and have a fair value of $33,750. Investments in shares (FV-OCI) have a fair value of $90,000. Both investments are currently recorded at cost. Note 4: Notes payable are long term except for the current principal instalment due of $45,000. (a) Prepare a corrected classified statement of financial position in good form. The notes above are for information only. Assume that you have decided not to use the revaluation model for property, plant, and equipment. (List Current Assets in order of liquidity. List Property, Plant, and Equipment in order of Land, and Buildings.) Current Assets Cash FV-NI Investments Accounts Receivable Inventory Total Current Assets Long-Term Investments FV-OCI Investments Assets Allocated to Trustee for Expansion Cash Treasury Notes Total Long-Term Investments Property, Plant, and Equipment Land AYAYAI CORPORATION Statement of Financial Position December 31, 2023 Assets $ 54000 62100 $ 79155 33750 76500 140445 90000 116100 427500 $ 329850 206100 Buildings 994500 Accumulated Depreciation - Equipment 256500 738000 1165500 Total Assets 1701450 Current Llabllltles Accounts Payable Current Portion of Notes Payable Income Tax Payable Total Current Liabilities Long-Term Liabilities Notes Payable Total Liabilities Shareholders' Equity Common Shares Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders' Equity Liabilities and Shareholders' Equity $ 113400 45000 33750 500000 286200 192150 270000 462150
Expert Answer:
Related Book For
Intermediate Accounting
ISBN: 978-1119048534
11th Canadian edition Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
Posted Date:
Students also viewed these accounting questions
-
A second order differential equation is given by dy/dx^2 - dy/dx 5+6y=x+2x+3 (a) Find the general solution of the differential equation.
-
The statement of financial position of Delacosta Corporation as at December 31, 2017, is as follows: Note 1: Goodwill in the amount of $70,000 was recognized because the company believed that the...
-
Quality Air Conditioning manufactures three home air conditioners: an economy model, a standard model, and a deluxe model. The profits per unit are $63, $95, and $135, respectively. The production...
-
Presented here are the components in Salas Company's income statement. Determine the missing amounts. Sales Revenue 71,200 $108,000 Cost of Goods Sold Gross Profit Operating Expenses Net Income...
-
Oakmead is the area head office of a Social Services department in the South of England. Its catchment area deals with around100 000 people. The range of services includes an intake unit, devoted to...
-
Epic Systems is a Wisconsin health care software company. In 2014, Epic introduced a company policy that required employees to use individual arbitration in any disputes. Jacob Lewis, an Epic...
-
Guillen, Inc. began work on a $7,000,000 contract in 2010 to construct an office building. Guillen uses the completed-contract method. At December 31, 2010, the balances in certain accounts were...
-
Consider the following Closed-loop block diagram of a system: R(s) K s + 5 15 Y(s) s+ p Consider the following parameter values: p = 2 and K-10. a. Obtain the closed-loop transfer function for the...
-
Comfy Furniture sells 3,300 couches per year at an average price of $1,130. The carrying cost per couch is $10.25 and the fixed order cost is $165. What is the economic order quantity for the couches?
-
How do unmodified opinions and qualified opinions expressed in the auditor's report differ from one another?
-
Please write a report that examines the following questions: 1. What goals is the use of Nyango Star trying to achieve? 2. Why is this goal trying to be achieved? 3. What accounts, accounting, and...
-
What are Pizza Hut's current and ongoing challenges? How will a new Enterprise Risk Management strategy give the company a competitive edge?
-
Explain the differences among controlling area currency, object currency, and transaction currency. What is the purpose of number ranges in management accounting? What are the key activities involved...
-
The name of this course is "Cost Accounting". So, what's a "cost"? WHY do we need to understand what this term means? 2. What's an expense? Is this the same as a cost or something different? If...
-
Langueville Manufacturing Company is considering the following investment proposal: Original investment $13,500 Operations (per year for four years): Cash receipts $10,000 Cash expenditures 5,500...
-
Ashlee, Hiroki, Kate, and Albee LLC each own a 25 percent interest in Tally Industries LLC, which generates annual gross receipts of over $10 million. Ashlee, Hiroki, and Kate manage the business,...
-
Refer to the 2014 financial statements and accompanying notes of Royal Bank of Canada (RBC) that are found on the company's website (www.royalbank.ca) or at www.sedar.com. Instructions (a) What...
-
On March 1, 2017, Parnevik Company sold goods to Goosen Inc. for $660,000 in exchange for a five-year, zero-interest-bearing note in the face amount of $1,062,937. The goods have an inventory cost on...
-
Eli Corp. has just received its August 31, 2017 bank statement, which is summarized as follows: The general ledger Cash account contained the following entries for the month of August: Deposits in...
-
Example In January 2004, a Mars Exploration Rover touched down on the surface of Mars and rolled out for exploration ( Figure
-
A battery-operated wall clock no longer keeps timeneither hand moves. Develop a hypothesis explaining why it fails to work, and then make a prediction that permits you to test your hypothesis....
-
Does the snowflake have rotational symmetry in Figure 1.6? If yes, describe the ways in which the flake can be rotated without changing its appearance. Does it have reflection symmetry? If yes,...
Study smarter with the SolutionInn App