Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Golden corporation is a public company listed on the Toronto Stock Exchange TSX with a December 31 year-end. The following is the Statement of Financial

Golden corporation is a public company listed on the Toronto Stock Exchange "TSX" with a December 31 year-end. The following is the Statement of Financial Position as at December 31, 2021 prepared internally by management. Assets Cash Accounts receivable Golden Corporation Statement of Financial Position December 31, 2021 Property, plant and equipment (net) Inventory $150,000 75,000 1,408,000 212,000 Assets Cash $150,000 Accounts receivable Property, plant and equipment (net) Inventory 75,000 1,408,000 Investments Liabilities and Shareholders' Equity Accounts payable Income tax payable Long-term debt Retained earnings Common shares, unlimited authorized, 200,000 issued The following additional infor 212,000 950,000 $2,795,000 $125,000 50,000 $650,000 1,200,000 770,000 $2,795,000 The following additional information is provided: 1. Included in accounts receivable is an amount of $15,000 from a customer with financial difficulties. As per management, the collectability of this amount is doubtful. 2. Property, plant and equipment includes an equipment costing $65,000 with accumulated depreciation of $42,500. This equipment is no longer used and is held for sale. The accumulated depreciation on the other property, plant and equipment is $577,500. 3. Inventory does not include goods costing $8,000 shipped on consignment. Receivables of $8,000 were recorded on these goods. The goods have not yet been sold by the consignee. 4. Investments are recorded at cost and consist of: $225,000 Investments-trading FV-NI (Fair value through net income) with fair value of $175,000 $400,000 Investments in shares (FV-OCI) with fair value of $470,000 $325,000 Patents with indefinite useful lives. 5. Long-term debt includes current principal instalment due of $250,000. Required: Prepare a corrected classified statement of financial position in good form

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

1. What might have led to the misinformation?

Answered: 1 week ago

Question

2. How will you handle the situation?

Answered: 1 week ago