Problem $2-9($AICPA Adapted$)$Problem $2-9($AICPA Adapted$)$

Boracay Company prepared the following condensed

statement of financial position on December $31,2023.$

The inventory account was found to include the cost of office

supplies of $P50,000$ and office equipment acquired at the end

of $2023$ at a cost of $P250,000.$

Other assets included land and building acquired on January

$1,2022$ for $P4,000,000,$ less mortgage of $P2,000,000$ and

accrued interest on the mortgage of P$200,000.$

At the time of purchase; the land was worth $P1,000,000.$ The

building on December $31,2023$ had a remaining life of $18$ years.

Current liabilities represented balances that were payable to trade

creditors. Other liabilities consisted of withholding tax payable.

However, no recognition was given to accrued salaries of P$250,000.$

The entity was originally organized in $2022$ when $30,000$

ordinary shares with par value of P$100$ were issued in

exchange for assets with fair value of $P3,200,000.$

Required:

Prepare a statement of financial position.

Boracay Company prepared the following condensed statement of financial position on December $31,2023.$

Current assets

Current liabilities

Working capital

Add other assets

Working capital plus other assets

Deduct other liabilities

Net assets

Money market placement three months.

Cash in bank

Accounts receivable

Notes receivable.

Financial assets at fair value

Inventory

Goodwill

Total current assets

$2,500,000$

$1,800,000$

$4,300,000$

$4,200,000$

$1,300,000$

The inventory account was found to include the cost of office supplies of P$50,000$ and office equipment acquired at the end of $2023$ at a cost of P$250,000.$

Other assets included land and building acquired on January $1,2022$ for P$4,000,000,$ less mortgage of P$2,000,000$ and accrued interest on the mortgage of P$200,000.$

At the time of purchase, the land was worth P$1,000,000.$ The building on December $31,2023$ had a remaining life of $18$ years.

Current liabilities represented balances that were payable to trade creditors. Other liabilities consisted of withholding tax payable. However, no recognition was given to accrued salaries of P$250,000.$

The entity was originally organized in $2022$ when $30,000$ ordinary shares with par value of P$100$ were issued in exchange for assets with fair value of P$3,200,000.$

Required:

Prepare a statement of financial position.

$67$