Question

The trial balance of Matarald at December 31, 2019, follows: Debits Credits 872.000 $ 824,000 153,600 243,200 96,000 128,000 1.440,000 40,000 1,600,000 1.664,000 328,000 217,600 1,294,400 64,000 7,680,000 960,000 552,000 478,400 Accounts payable Accounts receivable Accrued liabilities Accumulated depreciation buildings Accumulated depreciation equipment Accumulated other comprehensive income Administrative expenses Allowance for doubtful accounts Bonds payable (due on 31/12/2022) Buildings Cash Commission payable Common shares Correction of prior year error Cost of goods sold Equipment FV-OCI investments Long-term equity investment in winte com Gain on sale of land Intangible assets franchises (net) Intangible assets patents (net) Interest expense Inventory Investment income or losses Land Notes payable (due on 30/04/2022) Notes payable (due on 31/07/2020) Other comprehensive income Retained earnings Sales revenue Selling expenses FV-NI investments Totals 96,000 256,000 312.000 337,600 1,099,200 20.800 416,000 1.440,000 156,800 108,800 348,800 12,816,000 2,976,000 244,800 $19,523,200 $19,523,200 Required a) Prepare Matara Limited's classified statement of financial position as at December 31, 2019. Ignore income taxes. (11 marks) b) Is there any situation where it would make more sense to have a statement of financial position that is not classified? Explain your answer. (2 marks)

Answer 1

Trading and Profit & Loss Account of Matara Limited
Particulars	Amount	Particulars	Amount
To Cost of Good Sold	7680000	By Sales	12816000
To Gross Profit	5136000
	12816000		12816000
To Administrative Expenses	1440000	By Gross Profit	5136000
To Selling Expenses	2976000	By Gain on sale of land	96000
To Interest Expenses	337600	Investment Income	20800
To Correction of prior years	64000
To Net Profit	435200
	5252800		5252800

Balance Sheet of Matara Limited as on 31st December, 2019
Liabilities	Amount	Assets	Amount
Common Shares	1294400	FV-NI Investment	244800
Retain earnings	348800	Inventory	1099200
Notes Payable (30/04/2022)	1440000	Intengibel Assets
Notes Payable (31/07/2020)	156800	Franchises	256000
P&L Account	435200	Patents	312000
Commission Payable	217600	Associate company	478400
Accumulated other comprehensive Income	128000	FV-OCI Investment	552000
Bonds Payable (31/12/2022)	1600000	Equipments 960000
Accounts Payable	872000	Less-Depreciation 96000	864000
other comprehensive income	108800	Cash	328000
Allowance of doubtful debts	40000	Building 1664000
		Less-Depreciation 243200	1420800
		Accounts receivable	824000
		Land	416000
	6795200		6795200