SMART 2:29 PM 62% Problem 2-2 (IAA) Socorro Company provided the following information on December 31, 2019: Current assets 3,100,000 Current linbilities 1,000,000 Other assets 5,900,000 Long term liabilities 1,000,000 Capital 7,000,000 Cash (including P200,000 invested in money market arid restricted foreign deposit of P300,000) 1,000,000 Land held for undetermined use 500,000 Accounts receivable less allowance of P50,000 700.000 Inventories 600,000 Socorro Corporation share capital, at cost 300,000 Total current assets 3,100,000 Store supplies 50.000 Building less allowance of P500,000 3,000,000 Equipment less allowance of P250,000 750,000 Financial assets at amortized cost 1.000.000 Trademark 300,000 Advances to officers-indefinite repayment 150,000 Patent 250.000 Land 400.000 Total other assets 5.900,000 Accounts payable 500,000 Note payable, due December 31, 2020 100,000 Income tax payable 150,000 Share premium 250,000 Total current liabilities 1,000,000 Unearned leasehold income (five yeurs starting 2020) 350,000 Stock dividend payable 150,000 Serial bonds payable (P100,000 maturing annually) 500,000 Total long-term liabilitics 1,000,000 Retained earnings 1,500,000 Share capital, Pio par 5,000,000 Retained earnings appropriated for plant expansion 500,000 Total capital 7,000,000 Required: Prepare statement of financial position with supporting notes and computations. 58 SMART 2:29 PM 62% Problem 2-2 (IAA) Socorro Company provided the following information on December 31, 2019: Current assets 3,100,000 Current linbilities 1,000,000 Other assets 5,900,000 Long term liabilities 1,000,000 Capital 7,000,000 Cash (including P200,000 invested in money market arid restricted foreign deposit of P300,000) 1,000,000 Land held for undetermined use 500,000 Accounts receivable less allowance of P50,000 700.000 Inventories 600,000 Socorro Corporation share capital, at cost 300,000 Total current assets 3,100,000 Store supplies 50.000 Building less allowance of P500,000 3,000,000 Equipment less allowance of P250,000 750,000 Financial assets at amortized cost 1.000.000 Trademark 300,000 Advances to officers-indefinite repayment 150,000 Patent 250.000 Land 400.000 Total other assets 5.900,000 Accounts payable 500,000 Note payable, due December 31, 2020 100,000 Income tax payable 150,000 Share premium 250,000 Total current liabilities 1,000,000 Unearned leasehold income (five yeurs starting 2020) 350,000 Stock dividend payable 150,000 Serial bonds payable (P100,000 maturing annually) 500,000 Total long-term liabilitics 1,000,000 Retained earnings 1,500,000 Share capital, Pio par 5,000,000 Retained earnings appropriated for plant expansion 500,000 Total capital 7,000,000 Required: Prepare statement of financial position with supporting notes and computations. 58
