COMPREHENSIVE PROBLEM 1:

Below is the Trial Balance of Crash Landing on YouCompany as of and for

the year ending December 31, 2020.

Account Debit Credit

Cash on hand 120,586
Cash in bank 560,125
Trade receivables 400,125
Allowance for bad debts 60,128
Advances to suppliers 125,677
Interest receivable 1,248
Prepaid supplies 4,450
Receivable from insurance 70,990

Merchandise inventory - January 1, 2016 255,544

Prepaid interest 987

Prepaid insurance 6,680
Land 780,125
Land improvements 5,040

Accumulated depreciation - Land improvements 2,050

Building 480,650
Accumulated depreciation – Building 100,788
Building improvements 65,234

Accumulated depreciation - Building improvements 5,019

Furniture and equipment 88,190

Accumulated depreciation – Furniture 10,160

Machinery and equipment 110,897

Accumulated depreciation - Machinery and equipment 45,678

Trade payables 198,700

Advances from officers and employees 5,076

Utilities payable 6,807

Salaries payable 10,150
Unearned rent 5,600
Notes payable - short-term portion 250,000
Notes payable - long-term portion 180,000
Loans payable - short-term portion 130,000
Loans payable - long-term portion 450,000
Crash, capital 482,145
Crash, drawing 250,000
Sales 2,490,000
Sales discount 10,250
Sales return 1,577
Rent income 10,000
Interest income 1,500
Purchases 510,000
Purchases discount 88,000
Purchase return 7,650
Freight in 56,875
Freight out 6,780
Salaries expense 434,588
Utilities expense 10,770
Advertising expense 5,680
Rent expense 60,000
Bad debts 1,654
Depreciation – building 45,670
Depreciation - land improvements 6,557

Depreciation - building improvements 5,078

Depreciation – furniture 6,087

Depreciation - machinery and equipment 10,157

Supplies expense 10,124

Insurance expense 18,000
Interest expense 12,000
Miscellaneous expense 1,056

Merchandise inventory - December 31, 2016 301,256

Income and expense summary 301,256

 4,840,707 4,840,707

Compute for the following:

A. Current Assets
B. Noncurrent Assets
C. Total Assets
C. Current Liabilities
D. Noncurrent Liabilities
E. Total Liabilities
F. Equity
G. Net Income
H. Total Liabilities and Equity

COMPREHENSIVE PROBLEM 2:

Given the Trial Balance of Crash Landing on You Company as of and for the
year ending December 31, 2020.

REQUIREMENT:

A. Prepare a Statement of Financial Position in bond paper

B. Discuss the importance of preparing the SFP.