Question (30 marks)

The bookkeeper for FTI Corp has prepared the following balance sheet as at December 31, 2020:

FTI Corp

Balance Sheet

December 31, 2020

Cash

$ 200,500

Current Liabilities

$ 450,000

Accounts Receivable (net)

101,200

Long-term Liabilities

900,000

Inventories

280,000

Shareholders Equity

989,700

Investments

100,000

Land

800,000

Building (net)

850,000

Copyright (net)

8,000

$2,339,700

$2,339,700

The following additional information is provided:

1.

The cash balance includes:

Petty cash fund

$ 200

Cash advance to employee, payable on demand

4,000

Saving Account at TD Bank

46,300

Certificate of deposit (90-days)

120,000

10333333,00038,000

Chequing account at the Bank of Montreal

31,500

Bank overdraft at the Scotia Bank (no other accounts are held at

this bank) BankCIBC)

(1,500)

Total

$ 200,500

2.

The allowance for doubtful accounts $12,500.Included in the accounts receivable balance was $20,000 which was assigned to Meridian Credit Union on December 31as security for a loan (collateral), the loan bears annual interests at 8% and is due on April 1, 2021.

3.

The net realizable value of the inventory that is included in the Balance Sheet is $329,000.

Inventories do not include $45,000 of merchandise that was in transit at December 31.

Of this amount, $20,000 was bought from ONG Inc. with terms f.o.b. shipping point (the netrealizable value of this inventory was $34,000)

The remainder of inventory that cost $25,000 was shipped to FTI for consignment. The netrealizable value for this inventory is $36,000.

4. The investments section includes the following:

An interest bearing note receivable of $40,000 that was issued on June 1st2020 be arinst interest at 4% and is due on June 1, 2021

L

ong-term FV-OCI investment $40,000 carrying value (fair value $35,000 at December 31,2020). Management plans on holding on to these investments for a number of years.

FV-NI Investment 1,000 common shares of Landon Inc. purchased at $20.00 per share (fair value $23.50 per share at December 31,2020) .FTI expected to sell the shares as soon as the market price increases more next year.

5.

The land balance includes: land used for operations and recorded at its cost of $800,000 (the appraisal value of the land in 2020 was $1,200,000)

6. The building originally cost $1,100,000. Depreciation for 2020 has already been recorded.

7. The patent originally cost $24,000 and is being amortized over 6 years on a straight-line basis. Amortization for 2020 had already been recorded.

Required:

Part 1 (16 marks)

The company is a Canadian public company. Restate the asset side of FTIs Statement of Financial Position sheet at December 31, 2020 in good form. The categories are: Current Assets,

Long-term Investments, Property, Plant & Equipment and Intangible Assets.

Part 2 (4 marks)

Including any disclosure requirements.

Part 3 (6 marks)

Based on any changes to the value of the assets what account would be included in the Statement of Earnings and what section would each of the items be included in? Do not include

Amortization Expense or Bad Debt Expense.

Part 4 (1 mark)

Assuming the Accumulated Other Comprehensive Income was $20,000 at the beginning of 2020,what would be the Accumulated Other Comprehensive Income at the end of the