The statement of financial position of Larkspur Limited follows for the current year, 2020: LARKSPUR LIMITED Statement of Financial Position December 31, 2020 Current assets $167,580 Current liabilities $122.220 Investments 108,360 Long-term liabilities 214,200 Property, plant, and equipment 267,120 Shareholders' equity 294,840 Intangible assets 40,320 Other assets 47,880 N $631,260 $631,260 The following additional information is available and is the source of errors in classification which need to be corrected. 1. 2. 3. Current Assets include the following: bank account with an overdraft balance of $18.900; inventory with a FIFO cost of $109,620 and a net realizable value of $107,100; accounts receivable of $83,160 less allowance for doubtful accounts of $3,780. Investments include the following: a mortgage receivable from parent company $75,600, due in 2025; FV-NI investments held for trading with a cost of $12,600 and a fair value of $15.120; FV-OCI investments with a cost of $18,900 and a fair value of $17.640. Property. Plant and Equipment include the following: land $30.240; buildings $548,100 less accumulated depreciation of $365,400; vehicles $99.540 less accumulated depreciation of $61.740: land held for future use $16,380. Intangible assets include the following:patents net of accumulated arhortization of $40,320, Other assets include the following: customer deposits of $8,820, unearned revenue of $3,780, goodwill $55.440 and accumulated other comprehensive income (loss) of $(5,040). Current Liabilities include the following: pension obligation of $68,040, interest payable of $5.040: salaries and wages payable of $10.080; accounts payable $39,060. Long-term Liabilities include the following demand bank loan of 594,500; mortgage payable $119.700 of which $8.820 is due in the next year. 4. 5. 5 6. 7. 8. Shareholders Equity has 1.260 preferred shares (37,800 authorized) which were issued at an average price of $75 per share. and an unlimited number of authorized common shares with 69,300 shares issued at an average price of $1 per share, retained earnings of $131,040, Prepare a statement of financial position in good form. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Buildings and Vehicles.) Larkspur Limited Statement of Financial Position December 31, 2020 Assets Current Assets FV.NL Investments Accounts Receivable Less V Allowance for Doubtful Accounts Larkspur Limited Statement of Financial Position December 31, 2020 Assets Current Assets FV-NI Investments Accounts Receivable $ Less Allowance for Doubtful Accounts Inventory Total Current Assets Long-Term Investments FV-OC Investments Mortgage Receivable Land Held for Future Use Total Long Term investments Property, plant and Equipment Land Building $ Lats Accumulated Depreciation Building Vehicles Less Accumsated Depreciation Vehicles Total Property. Plant and Equipment Intangible Assets Patents Goodwill Total intangible Assets V Liabilities and Shareholders' Equity Current Liabilities > Accounts Payable Bank Overdraft Pension Obligation Interest Payable Salaries and Wages Payable Customer Deposits Mortgage Payable Unearned Revenue Total Current Uabilities Long Term Liabilities Bank Loan Payable s Mortgace Payable Total Long Term Liabilities Total Liabilities Shareholders' Equity Capital Shares Preferred Shares $ Common Shares Total Capital Shares Retained Earnings Total Shareholders' Equity Total Liabilities and Shareholders Equity