undefined

Additional information: 1. The notes payable balance is for a 6-month loan taken by Boom on January 31, 2022 The loan is due July 31, 2022. Interest (6%) and principal are due at maturity. No interest expense has yet been recorded on this loan. 2. During 2021, 5% of the fireworks manufactured by Boom were returned due to faulty operation. This percentage is normal and expected in this industry. The value shown under provisions for $2,500 is the value of expected refunds the company will need to make for the period, based on 5% of sales in 2022 3. During the period January 1 through June 30, deferred revenues were earned totalling $5,500. These earned revenues are not reflected in the above statement. 4. While the following salaries and employee benefits have accrued for the month, they are not reflected in the above statement: Salaries accrued $10,000 CPP (employee share) $495 El (employee share) $188 CPP (employer share) $495 El (employer share) $263 Employee income tax payable $1,893 5. Annual payments on the lease liability are $5,000 per year. 6. The 7% note payable value includes the current portion of the loan. The loan principal will be repaid in equal amounts over the next five years. 7. Bonds have a Face Value of $2,000,000 and interest is paid semi-annually on January 1 and July 1, the stated interest rate is 6% and the interest rate on the date of issue was 7%. The year-end adjusting entry to recognize interest expense on June 30, 2022 has not yet been made. Instructions: Prepare a corrected partial classified statement of financial position. (30 Marks) Problem #3 The liabilities section of Boom Ltd's Statement of Financial Position is shown below. Boom Ltd. Statement of Financial Position (partial) June 30, 2022 Current Liabilities Accounts payable Provisions Rent payable Deferred revenue Notes payable Lease Liability $12,500 2,500 3,875 7,500 15.000 50,000 Long term liabilities Bonds payable (due 2030) Notes payable 7% (June 30, 2027) 1,910,000 150,000 Additional information: 1. The notes payable balance is for a 6-month loan taken by Boom on January 31, 2022 The loan is due July 31, 2022. Interest (6%) and principal are due at maturity. No interest expense has yet been recorded on this loan. 2. During 2021, 5% of the fireworks manufactured by Boom were returned due to faulty operation. This percentage is normal and expected in this industry. The value shown under provisions for $2,500 is the value of expected refunds the company will need to make for the period, based on 5% of sales in 2022 3. During the period January 1 through June 30, deferred revenues were earned totalling $5,500. These earned revenues are not reflected in the above statement. 4. While the following salaries and employee benefits have accrued for the month, they are not reflected in the above statement: Salaries accrued $10,000 CPP (employee share) $495 El (employee share) $188 CPP (employer share) $495 El (employer share) $263 Employee income tax payable $1,893 5. Annual payments on the lease liability are $5,000 per year. 6. The 7% note payable value includes the current portion of the loan. The loan principal will be repaid in equal amounts over the next five years. 7. Bonds have a Face Value of $2,000,000 and interest is paid semi-annually on January 1 and July 1, the stated interest rate is 6% and the interest rate on the date of issue was 7%. The year-end adjusting entry to recognize interest expense on June 30, 2022 has not yet been made. Instructions: Prepare a corrected partial classified statement of financial position. (30 Marks) Problem #3 The liabilities section of Boom Ltd's Statement of Financial Position is shown below. Boom Ltd. Statement of Financial Position (partial) June 30, 2022 Current Liabilities Accounts payable Provisions Rent payable Deferred revenue Notes payable Lease Liability $12,500 2,500 3,875 7,500 15.000 50,000 Long term liabilities Bonds payable (due 2030) Notes payable 7% (June 30, 2027) 1,910,000 150,000