RELAX COMPANY

Statement of Financial Position

As of December 31, 2020

ASSETS

Current assets: Note

Cash ₱ 400,000
Trade and other receivables (1) 750,000
Inventories 1,000,000
Prepaid expenses 100,000
Total current assets ₱ 2,250,000

Noncurrent assets:
Property, plant and equipment (2) ₱ 5,600,000
Investment in associate 1,300,000
Intangible assets (3) 350,000
Total noncurrent assets ₱ 7,250,000
Total assets ₱ 9,500,000

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Trade and other payables (4) ₱ 1,350,000
Mortgage note payable- current portion 400,000
Total current liabilities ₱ 1,750,000

Noncurrent liabilities:
Mortgage payable- remaining portion ₱ 1,600,000
Bank loan payable- due June 30, 2022 500,000
Total noncurrent liabilities ₱ 2,100,000

Shareholders' equity:
Share capital ₱ 3,000,000
Reserves (5) 1,400,000
Retained earnings unappropriated 1,250,000
Total shareholders' equity ₱ 5,650,000
Total liabilities and shareholders' equity ₱ 9,500,000
Note 1- Trade and other receivables
Accounts receivable ₱ 800,000
Allowance for doubtful accounts (50,000)
Total trade and other receivables ₱ 750,000

Note 2- Property, plant and equipment

Land ₱ 500,000
Building 5,000,000
Machinery 3,000,000
Equipment 400,000
Total ₱ 8,900,000
Accumulated depreciation (3,300,000)
Carrying amount of property, plant and equipment ₱ 5,600,000

Accumulated depreciation:
Building ₱ 2,000,000
Machinery 1,200,000
Equipment 100,000
Total accumulated depreciation ₱ 3,300,000

Note 3- Intangible assets

Trademark ₱ 150,000
Secret processes and formulas 200,000
Total intangible assets ₱ 350,000

Note 4- Trade and other payables

Accounts payable ₱ 350,000
Notes payable 750,000
Income tax payable 50,000
Accrued expenses 60,000
Estimated liability for damages 140,000
Total trade and other payables ₱ 1,350,000

Note 5- Reserves
Share premium ₱ 300,000
Retained earnings appropriated for plant expansion 1,000,000
Retained earnings appropriated for contingencies 100,000
Total reserves ₱ 1,400,000
 RELAX COMPANY
Trial Balance
December 31, 2020

Cash ₱ 400,000
Accounts receivable 800,000
Allowance for doubtful accounts ₱ 50,000
Inventories 1,000,000
Prepaid expenses 100,000
Land 500,000
Building 5,000,000
Accumulated depreciation- building 2,000,000
Machinery 3,000,000
Accumulated depreciation- machinery 1,200,000
Equipment 400,000
Accumulated depreciation- equipment 100,000
Investment in associate 1,300,000
Trademark 150,000
Secret processes and formulas 200,000
Accounts payable 350,000
Notes payable 750,000
Income tax payable 50,000
Accrued expenses 60,000
Estimated liability for damages 140,000
Mortgage note payable- current portion 400,000
Mortgage note payable- remaining portion 1,600,000
Bank loan payable- due June 30,2022 500,000
Share capital 3,000,000
Share premium 300,000
Retained earnings appropriated for plant expansion 1,000,000
Retained earnings appropriated for contingencies 100,000
Retained earnings unappropriated 1,250,000

Totals: ₱ 12,850,000 ₱ 12,850,000

RELAX
COMPANY
Trial Balance
Statement of Financial Position with supporting notes

PREPARED BY:
EDIZA, KENNETH R.
PCBET- 01-201A

SUBMITTED TO:
PROF. JAVIER NAÑOZ

DATE:
FEBRUARY 28, 2020