the solution please?!
E5-5 (Preparation of a Corrected Statement of Financial Position) Bruno Company has decided to expand its operations. The bookkeeper recently completed the statement of financial position shown on the BRUNO COMPANY STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2015 Current assets Cash 260,000 Accounts receivable (net) 340,000 Inventory (at lower-of-average-cost-or-net realizable value) 401,000 Trading securities-at cost (fair value 120,000) 140,000 Property, plant, and equipment Buildings (net) 570,000 Equipment (net) 160,000 Land held for future use 175,000 Intangible assets Goodwill 80,000 Other identifiable assets 90,000 Prepaid expenses 12,000 Current liabilities Accounts payable 135,000 Notes payable (due next year) 125,000 Pension liability 82,000 Rent payable 49,000 Premium on bonds payable 53,000 Non-current liabilities Bonds payable 500,000 Equity Share capital - ordinary, 1.00 par, authorized 400,000 shares, issued 290,000 290,000 Share premium-ordinary 180,000 Retained earnings Instructions Prepare a revised statement of financial position given the available information. Assume that the accumu- lated depreciation balance for the buildings is 160,000 and for the equipment, 105,000. The allowance for doubtful accounts has a balance of 17,000. The pension liability is considered a non-current liability E5-9 (Current Assets and Current Liabilities) The current assets and current liabilities sections of the statement of financial position of Jin Liu Company appear as follows (amounts in thousands). JIN LIU COMPANY STATEMENT OF FINANCIAL POSITION (PARTIAL) DECEMBER 31, 2015 Inventory V171,000 Notes payable Accounts receivable Accounts payable Less: Allowance for doubtful accounts 7,000 82,000 Propaid expenses 9,000 Cash 40,000 V302,000 V89,000 V 67,000 61,000 V128,000 The following errors in the corporation's accounting have been discovered: 1. January 2016 cash disbursements entered as of December 2015 included payments of accounts payable in the amount of Y35,000, on which a cash discount of 2% was taken. 2. The inventory included Y27,000 of merchandise that had been received at December 31 but for which no purchase invoices had been received or entered. Of this amount, V10,000 had been received on consignment; the remainder was purchased f.o.b, destination, terms 2/10, n/30. 3. Sales for the first four days in January 2016 in the amount of Y30,000 were entered in the sales book as f December 31, 2015. Of these, 121,500 were sales on account and the remainder were cash sales. 4. Cash, not including cash sales, collected in January 2016 and entered as of December 31, 2015, totaled Y35,324. Of this amount, V23,324 was received on account after cash discounts of 2% had been deducted, the remainder represented the proceeds of a bank loan. Instructions (a) Restate the current assets and current liabilities sections of the statement of financial position in accordance with good accounting practice. (Assume that both accounts receivable and accounts payable are recorded gross.) (b) State the net effect of your adjustments on Jin Liu Company's retained earnings balance
