Rey Joyce B.

Abuel July 26, 2018

AEC 11-ACB

Exemplar Company
Statement of Financial Position
As of December 31, 2017

ASSETS

Current assets: Note

Cash and cash equivalents ₱ 500,000
Trading securities 280,000
Trade and other receivables (1) 640,000
Inventories 1,300,000
Prepaid expenses 70,000
Total current assets ₱ 2,790,000

Noncurrent assets:
Property, plant and equipment (2) 5,300,000
Long term investments (3) 1,310,000
Intangible assets (4) 3,350,000
Other noncurrent assets (5) 150,000
Total noncurrent assets 10,110,000

Total assets ₱ 12,900,000

LIABILITIES AND SHAREHOLDER’S EQUITY

Current liabilities: Note

Trade and other payables (6) 1,000,000
Total current liabilities 1,000,000

Noncurrent liabilities:
Bonds payable 5,000,000
Premium on bonds payable 1,000,000
Total noncurrent liabilities 6,000,000

Shareholder’s equity
Share capital (7) 7,000,000
Reserves (8) 700,000
Retained earnings (deficit) (1,800,000)
Total shareholder’s equity 5,900,000

Total liabilities and shareholder’s equity ₱ 12,900,000

Note 1 Trade and other receivables

Accounts receivable ₱ 400,000

Allowance for doubtful accounts (20,000)
Notes receivable 250,000
Accrued interest on notes receivable 10,000

Total trade and other receivables ₱ 640,000

Note 2 Property, plant and equipment

Land ₱ 1,500,000
Building 5,000,000
Equipment 1,000,000

Total 7,000,000
Accumulated depreciation (2.200,000)

Carrying amount ₱ 5,300,000

Accumulated depreciation:
Land -
Building 2,000,000
Equipment 200,000
Total accumulated depreciation 2,200,000

Note 3 Long-term investments

Land held for speculation ₱ 500,000

Sinking fund 400,000
Preference share redemption fund 350,000
Cash surrender value 60,000

Total long-term investments ₱ 1,310,000

Note 4 Intangible assets

Computer software ₱ 3,250,000

Lease rights 100,000

Total intangible assets ₱ 3,350,000

Note 5 Other noncurrent assets

Advances to officers-not currently collectible ₱ 100,000

Long-term refundable deposit 50,000

Total other noncurrent assets ₱ 150,000

Note 6 Trade and other payables

Accounts payable ₱ 400,000

Notes payable 300,000
Unearned rent income 40,000
SSS payable 10,000
Accrued salaries 100,000
Dividends payable 120,000
Withholding tax payable 30,000

Total trade and other payables ₱ 1,000,000

Note 7 Share capital

Preference share capital ₱ 2,000,000

Ordinary share capital 5,000,000

Total share capital ₱ 7,000,000

Note 8 Reserves

Share premium – preference ₱ 500,000

Share premium – ordinary 200,000

Total reserves ₱ 700,000