The statement of financial position of Major Corporation follows for the current year, 2020:

MajorCorporation

Statement of Financial Position

December 31, 2020

Current assets

$ 485,000

Current liabilities

$ 380,000

Investments

640,000

Long-term liabilities

960,000

Property, plant, and equipment

1,720,000

Shareholders' equity

1,770,000

Intangible assets

265,000

$3,110,000

$3,110,000

The following additional information is available:

1.The Current Assets section includes the following: cash $150,000; accounts receivable $170,000, less $10,000 allowance for doubtful accounts; inventory $180,000; and unearned revenue $5,000.The cash balance is composed of $190,000, less a bank overdraft of $40,000 (at a separate financial institution). Inventory is stated at the lower of FIFO cost and net realizable value.

2.The Investments section includes the following: note receivable from a related company, due in 2026, $40,000; FV-NI investments in shares $80,000 (fair value $80,000); FV-OCI investments in shares $125,000 (fair value $155,000); bond sinking fund $250,000; and patents $115,000, net of accumulated amortization.

3.Property, Plant, and Equipment include buildings $1,040,000, less accumulated depreciation $360,000; equipment $450,000, less accumulated depreciation $180,000; land $500,000; and land held for future use $270,000.

4.Intangible Assets include franchise, net of accumulated amortization, $265,000.

5.Current Liabilities include the following: accounts payable $140,000; notes payable, short-term $80,000, long-term $120,000; and income tax payable $40,000.

6.Long-term Liabilities are composed solely of 7% bonds payable issued at a discount, due in 2028.

7.Shareholders' Equity has 70,000 preferred shares (200,000 authorized), which were issued for $450,000, and 100,000 common shares (unlimited number authorized), which were issued at an average price of $10 per share. In addition, the corporation has retained earnings of $290,000 and accumulated other comprehensive income of $30,000.

Instructions

a.Prepare a statement of financial position in good form. (Adjust the amounts in each SFP classification based on the additional information.)