NICOLE ALTHEA M. EGUIA
BSA
RELAX COMPANY
Statement of Financial Position
December 31, 2022
ASSETS
Current assets:
Cash
Trade and other receivables
Inventories
Prepaid expenses
Total current assets
Noncurrent assets:
Property, plant and equipment
Investment in associate
Intangible assets
Total noncurrent assets
Note
(1)
(2)
(3)
(4)
400,000
750,000
1,000,000
100,000
2,250,000
(5)
(6)
5,600,000
1,300,000
350,000
7,250,000
Total assets
9,500,000
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade and other payables
(7)
1,210,000
Warranty liability
(8)
140,000
Current portion of mortgage payable
400,000
Bank loan payable – due June 30, 2023
500,000
Total current liabilities
2,250,000
Noncurrent liabilities:
Mortgage payable – remaining portion
Total noncurrent liabilities
1,600,000
1,600,000
Shareholders’ Equity
Share Capital
Share Premium
Retained Earnings
Total shareholders’ equity
3,000.000
300,000
2,350,000
Total liabilities and shareholders’ equity
5,650,000
9,500,000
Note 1 – Cash
Cash
400,000
Total Cash
400,000
Note 2 – Trade and other receivables
Accounts receivable
800,000
Allowance for doubtful accounts
(50,000)
Trade and other receivables
750,000
Note 3 – Inventories
Inventories
1,000,000
Total inventories
1,000,000
Note 4 – Prepaid expenses
Prepaid expenses
100,000
Total prepaid expenses
100,000
Note 5 – Property, plant and equipment
Land
Building
Machinery
Equipment
Total
Accumulated depreciation
500,000
5,000,000
3,000,000
400,000
8,900,000
(3,300,000)
Carrying Amount
5,600,000
Accumulated depreciation:
Building
Machinery
Equipment
2,000,000
1,200,000
100,000
Total accumulated depreciation
3,300,000
Note 6 – Intangible Assets
Trademark
Secret processes and formulas
150,000
200,000
Total intangibles assets
350,000
Note 7 – Trade and other payables
Notes payable
Accounts payable
Income tax payable
Accrued Expenses
Total trade and other payables
750,000
350,000
50,000
60,000
1,210,000
Note 8 – Warranty liability
Estimated liability for damages
140,000
Total warranty liability
140,000