Using the information supplied, I need to make balance sheet/statement of financial position for A COMPANY for the end of 2025 ...

EXAMPLE :

A COMPANY have just engaged you as their external accountant to assist in the preparation of the entity's 2025 financial statements. The financial period of the company is from January 1 to December 31.

The company has provided you the following list of accounts, and the trial balance totals per account as at December 31, 2025:

* Trial Balance

Name of Account & Amount :-

Accounts Payable

$8,000,000

Accounts Receivables

$4,500,000

Advance from Substantial Shareholder

$10,750,000

Cash and Cash Equivalents

$950,000

Cost of Goods Sold

$65,015,000

Current Tax Liabilities

$1,600,000

Employee Benefit Obligations

$1,500,000

Gain from Sale of Plant and Equipment

$15,002,000

Intangible Assets

$1,200,000

Inventory

$19,650,000

Loans Due in Less than 12 Months

$1,150,000

Long-Term Intercorporate Investment

$48,000,000

Long-Term Land Investment

$6,500,000

Long-Term Loans

$19,580,000

Notes Payable

$4,000,000

Notes Payable (Due in Less than 12 Months)

$500,000

Operating Expenses

$16,014,000

Other Payables

$450,000

Other Receivables (Due in more than 12 Months)

$250,000

Paid-Up Capital

$32,000,000

Plant and Equipment

$28,500,000

Prepaid Expenses

$520,000

Property

$10,150,000

Reserves

$14,500,000

Retained Earnings

$15,190,000

Sales

$100,890,000

Short-Term Investments

$6,500,000

Additional Information:

1. The trial balance amount for Plant and Equipment is a gross amount. The total accumulated depreciation of applied to Plant and Equipment as at December 31, 2025 is $6,000,000. It is the policy of A COMPANY to show the value of Plant and Equipment as a net amount in the financial statements.

2. For the period ended December 31, 2025, A COMPANY recorded a profit of $7,500,000. This amount has yet to be included in the Retained Earnings balance as per the trial balance.

3. The substantial shareholder has indicated that to settle the advance amount, the substantial shareholder as indicated a very strong preference and probability for payment by issuance of new equity.

4. All prepaid expenses as at December 31, 2025 are expected to be consumed by the end of December 31, 2026.

5. The land held for investment is separate from the property the plant and equipment (owned by A COMPANY) resides on.

6. In the forthcoming 12 months, A COMPANY is predicting the entity will purchase plant and equipment to the value of $14,000,000.

7. The value of the Inventory as shown in the trial balance is the net realizable value. The value of inventory at cost is $15,650,000.

8. The effective tax rate that A COMPANY is subject to is 21%.