Question

Prepare a classified statement of financial position. Assume that $19,720 of the bank loan payable will be paid in 2019. (List Property, plant and equipment in order of land, buildings and equipment. List Current Assets in order of liquidity.) 'PINA COLADA CORP. Statement of Financial Position Assets

Answer 1

17,168 18,270 6,786 $ 42,224 88,740 87,290 92,336 PINA COLADA CORP. Statement of Financial Position December 31, 2018 Assets Current Assets: Cash $ Accounts Receivable $ Prepaid Insurance $ Total Current Assets Property, plant and Equipment: Land Building $ 153,410 Less: Accumulated Depreciation-Building $ 66,120 $ Equipment $ 119,480 Less: Accumulated Depreciation-Equipment $ 27,144 $ Total Property, Plant and Equipment Total Assets Liabilities and Shareholders' Equity Current Liabilities: Accounts Payable $ Interest Payable $ Income Taxes Payable $ Bank Loan Payable $ Total Current Liabilities Long-term Liabilities: Bank Loan Payable Total Liabilities Shareholders' Equity: Common Shares $ Retained Earnings $ Total Shareholders' Equity Total Liabilities and Shareholders' Equity $ $ 268,366 310,590 12,180 5,220 1,595 19,720 $ 38,715 $ $ 116,000 154,715 89,900 65,975 $ $ 155,875 310,590

Net Income = Sales - Office Expense - Depreciation Expense - Interest Expense - Income Tax Expense
Net Income = $20,561 - $841 - $7,685 - $3,770 - $290
Net Income = $7,975

Ending Retained Earnings = Beginning Retained Earnings + Net Income
Ending Retained Earnings = $58,000 + $7,975
Ending Retained Earnings = $65,975