Question

Pina SpA has decided to expand its operations. The bookkeeper recently completed the following statement of financial position in order to obtain additional funds for expansion.

Pina SpA Statement of Financial Position December 31, 2022
Current assets
Cash		€235,500
Accounts receivable (net)		345,500
Inventory (at lower-of-average-cost-or-net realizable value)		406,500
Trading securities—at cost (fair value €125,500)		145,500
Property, plant, and equipment
Buildings (net)		575,500
Equipment (net)		165,500
Land held for future use		180,500
Intangible assets
Goodwill		85,500
Other identifiable assets		95,500
Prepaid expenses		17,500
Current liabilities
Accounts payable		140,500
Notes payable (due next year)		130,500
Pension liability		87,500
Rent payable		54,500
Premium on bonds payable		58,500
Non-current liabilities
Bonds payable		505,500
Equity
Share capital—ordinary, €1.00 par, authorized 400,000 shares, issued 295,500		295,500
Share premium—ordinary		165,500
Retained earnings		?

Prepare a revised statement of financial position given the available information. Assume that the accumulated depreciation balance for the buildings is €165,500 and for the equipment, €110,500. The allowance for doubtful accounts has a balance of €22,500. The pension liability is considered a non-current liability. (List Current Assets in reverse order of liquidity. List Property, Plant and Equipment in order of Buildings and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)

PINA SPA Statement of Financial Position Assets € €

Answer 1

Solution:

Pina Spa
Statement of financial position
December 31,2022
Assets
Current assets
Cash		2,35,500
Equity investment		1,25,500
Accounts receivable	3,68,000
Less: Allowance for doubtful debts	22,500	3,45,500
Inventory		4,06,500
Prepaid expenses		17,500
Total current assets			11,30,500
Long term investments
Land		1,80,500
Cash surrendered		95,500
Total long term investments			2,76,000
Property, plant and equipment
Buildings	7,41,000
Less: Accumulated depreciation	1,65,500	5,75,500
Euipment	2,76,000
Less: Accumulated depreciation	1,10,500	1,65,500
Total proerty, plant and equipment			7,41,000
Intangible assets
Goodwill			85,500
Total assets			22,33,000
Liabilities and stockholders equity
Current liabilities
Accounts payable		1,40,500
Notes payable		1,30,500
Rent payable		54,500
Total current liabilities			3,25,500
Long term liabilites
Bonds payable	5,05,500
Add: Premium on bonds payable	58,500	5,64,000
Pension obligation		87,500	6,51,500
Total liabilities			9,77,000
Stockholders equity
Common stock	2,95,500
Addition paid in capital	1,65,500	4,61,000
Retained earnings		7,95,000
Total stockholders equity			12,56,000
Total laibilities and stockholders equity			22,33,000

9 Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X % Cut AutoSum Calibri 11 A A z Wrap Text General Normal Bad Good Fill- Paste Да Copy * Format Painter B 1 U- A- *Merge & Center Conditional Format as Neutral Formatting Table Calculation Check Cell Insert Delete Format 2 Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number F Styles Cells P25 f A B с D E F K L M N 0 P 0 R S T U V 5 6 7 8 9 10 11 12 13 14 15 16 H 1 J Assets Current assets Cash 2,35,500 Equity investment 1,25,500 Accounts receivable 3,68,000 Less: Allowance for doubtful debts 22,500 3,45,500 Inventory 4,06,500 Prepaid expenses 17,500 Total current assets 11,30,500 Long term investments Land 1,80,500 Cash surrendered 95,500 Total long term investments 2,76,000 Property, plant and equipment Buildings 7,41,000 Less: Accumulated depreciation 1,65,500 5,75,500 Euipment 2,76,000 Less: Accumulated depreciation 1,10,500 1,65,500 Total proerty, plant and equipment 7,41,000 Intangible assets Goodwill 85,500 Total assets 22,33,000 Liabilities and stockholders equity Current liabilities 17 18 19 20 Current assets Cash 2,35,500 Accounts receivable (net) 3,45,500 Inventory (lower of average cost or market) 4,06,500 Equity investments (trading) at cost (fair value o 1,25,500 1,45,500 Property, plant and equipment Buildings(net) 5,75,500 Equipments(net) 1,65,500 Land held for future use 1,80,500 Intangible assets Goodwill 85,500 Cash surrender value of life insurance 95,500 Prepaid expenses 17,500 Current liabilities Accounts payable 1,40,500 Notes payable (due next year) 1,30,500 Pension obligation 87,500 Rent payable 54,500 Premium on bonds payable 58,500 Long term liabilities Bonds payable 5,05,500 Stockholders equity Common stock, 1 authorized 400,000 shres issued 295,500 2,95,500 Additional paid in capital 1,65,500 Retained earnings Accumulated depreciation for building 1,65,500 Accumulated depreciation for equipment 1,10,500 Allowance for doubtful accoutns 22,500 21 22 23 24 O 25 26 27 28 29 30 1,40,500 1,30.500 54,500 31 32 3,25,500 33 34 35 36 37 38 Accounts payable Notes payable Rent payable Total current liabilities Long term liabilites Bonds payable Add: Premium on bonds payable Pension obligation Total liabilities Stockholders equity Common stock Addition paid in capital Retained earnings Total stockholders equity Total laibilities and stockholders equity Sheet171 Sheet172 Sheet173 5,05,500 58,500 5,64,000 87,500 6,51,500 9,77,000 39 40 41 42 2,95,500 1,65,500 4,61,000 7,95,000 12,56,000 22,33,000 Sheet174 Sheet175 43 Sheet165 Sheet166 Sheet167 Sheet168 Sheet169 Sheet170 Ready W 80% 1 Type here to search O חד 41% O » ENG 02:18 22-09-2020

9 Copy of HomeworkLib2 - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View X % Cut AutoSum Calibri 11 A A z Wrap Text General Normal Bad Good la Copy Fill- Paste B 1 U- A, - Merge & Center Calculation Conditional Format as Neutral Formatting Table Check Cell Insert Delete Format Format Painter 2 Clear Sort & Find & Filter - Select Editing Clipboard Font Alignment Number Styles Cells L18 fac А B С D E F G Н. K L M 5 6 7 =D8 =C11 8 9 235500 345500 |406500 125500 145500 10 11 =H9-H10 =D10 =D19 12 13 =17+18+10+111+112 14 15 575500 165500 180500 =D15 =D18 16 Assets Current assets Cash Equity investment Accounts receivable =D9+D34 Less: Allowance for doubtful debts =D34 Inventory Prepaid expenses Total current assets Long term investments Land Cash surrendered Total long term investments Property, plant and equipment Buildings =D13+D32 Less: Accumulated depreciation =D32 Euipment =D14+D33 Less: Accumulated depreciation =D33 Total proerty, plant and equipment Intangible assets Goodwill Total assets Liabilities and stockholders equity Current liabilities =115+116 17 18 19 20 85500 95500 17500 =H19-H20 Current assets Cash Accounts receivable (net) Inventory (lower of average cost or market) Equity investments (trading) at cost (fair value of) Property, plant and equipment Buildings(net) Equipments(net) Land held for future use Intangible assets Goodwill Cash surrender value of life insurance Prepaid expenses Current liabilities Accounts payable Notes payable (due next year) Pension obligation Rent payable Premium on bonds payable Long term liabilities Bonds payable Stockholders equity Common stock, 1 authorized 400,000 shres issued 295,500 Additional paid in capital Retained earnings Accumulated depreciation for building Accumulated depreciation for equipment Allowance for doubtful accoutns 21 =H21-H22 22 23 140500 130500 87500 54500 58500 =120+122 24 25 26 27 =D17 =J25+23+J17+J13 505500 28 29 1295500 30 165500 =D21 =D22 =D24 31 =129+130+131 32 33 34 165500 110500 122500 =D27 =D25 35 36 =H34+H35 =D23 Accounts payable Notes payable Rent payable Total current liabilities Long term liabilites Bonds payable Add: Premium on bonds payable Pension obligation Total liabilities Stockholders equity Common stock Addition paid in capital Retained earnings Total stockholders equity Total laibilities and stockholders equity Sheet174 Sheet175 =135+136 =J36+35+J32 37 38 39 =D29 40 =D30 =H39+H40 =J42-140 41 42 =J43-J37 =J26 43 Sheet165 Sheet166 Sheet167 Sheet168 Sheet169 Sheet170 Sheet171 Sheet172 Sheet173 lll Ready M 80% 1 Type here to search O I 41% O » ENG 02:19 22-09-2020