Q2.

The following statement of financial position was prepared by the bookkeeper for Hauser Company as of December 31, 2020:

Hauser Company

Statement of Financial Position

as of December 31, 2020

Cash $ 95,000 Accounts payable $ 85,000

Accounts receivable (net) 52,200 Bonds payable 100,000

Inventory 62,000 Shareholders' equity 238,500

Investments 76,300

Equipment (net) 106,000

Patents 32,000

$423,500 $423,500

The following additional information is provided:

1. Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted.

2. The net accounts receivable balance includes:

(a) accounts receivabledebit balances $60,000;

(b) accounts receivablecredit balances $4,000;

(c) allowance for doubtful accounts $3,800.

3. Inventory does not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.

4. Investments include investments in common shares, trading $19,000 and available-for-sale $48,300, and franchises $9,000.

5. Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.

Instructions

Prepare a statement of financial position in good form (shareholders' equity details can be omitted.) Assume Hauser reports in accordance with ASPE.