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Exercise No.3 (Acctg 7) - Tan

The document is the statement of financial position of Socorro Company as of December 31, 2020. It shows total assets of P8.7 million, consisting of current assets of P2.35 million and noncurrent assets of P6.35 million. Total liabilities are P1.6 million, comprising current liabilities of P850,000 and noncurrent liabilities of P750,000. Total shareholder's equity is P7.1 million. A number of notes provide additional details on items in the statement.

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Faith Reyna Tan
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121 views2 pages

Exercise No.3 (Acctg 7) - Tan

The document is the statement of financial position of Socorro Company as of December 31, 2020. It shows total assets of P8.7 million, consisting of current assets of P2.35 million and noncurrent assets of P6.35 million. Total liabilities are P1.6 million, comprising current liabilities of P850,000 and noncurrent liabilities of P750,000. Total shareholder's equity is P7.1 million. A number of notes provide additional details on items in the statement.

Uploaded by

Faith Reyna Tan
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Ma. Faith R.

Tan March 15, 2021

BS-2A | Acctg 7

Exercise no. 3

SOCORRO COMPANY
Statement of Financial Position
December 31, 2020

ASSETS

Note

Current assets:

Cash and cash equivalents (1) P 700 000


Trade and other receivables (2) 700 000
Inventories 600 000
Store supplies 50 000
Restricted cash 300 000

Total current assets P 2 350 000

Noncurrent assets:

Property, plant and equipment (3) 4 150 000


Long-term investments (4) 1 500 000
Intangible assets (5) 550 000
Advances to officers 150 000

Total noncurrent assets 6 350 000

Total assets P 8 700 000

LIABILITIES AND SHAREHOLDER’S EQUITY

Current liabilities:

Trade and other payables (8) 750 000


Current portion of long-term debt 100 000

Total current liabilities 850 000

Noncurrent liabilities:

Serial bonds 400 000


Unearned income 350 000

Total noncurrent liabilities 750 000

Shareholder’s equity

Share capital (7) 5 150 000


Reserves (8) 1 050 000
Retained earnings (9) 1 200 000
Treasury shares ( 300 000)

Total shareholder’s equity 7 100 000

Total liabilities and shareholder’s equity P 8 700 000


Note 1 – Cash and cash equivalents

Cash P 500 000


Money market 200 000

Total cash and cash equivalents P 700 000

Note 2 – Trade and other receivables

Accounts receivable P 750 000


Allowance for doubtful accounts ( 50 000)

Total trade and other receivables P 700 000

Note 3 – Property, plant and equipment

Building P 3 500 000


Equipment 1 000 000
Land 400 000
Total 4 900 000
Accumulated Depreciation:
Building P 500 000
Equipment 250 000 ( 750 000)

Carrying Amount P 4 150 000

Note 4 – Long-term investments

Land held for undetermined use P 500 000


Financial assets at amortized cost 1 000 000

Total long-term investments P 1 500 000

Note 5 – Intangible assets

Trademark P 300 000


Patent 250 000

Total intangible assets P 550 000

Note 6 – Trade and other payables

Accounts payable P 500 000


Income tax payable 150 000
Note payable 100 000

Total trade and other payables P 750 000

Note 7 – Share Capital

Share capital, P 100 par P 5 000 000


Stock dividend payable 150 000

Total share capital P 5 150 000

Note 8 – Reserves

Retained earnings, treasury P 300 000


Share premium 250 000
Retained earnings, plant expansion 500 000

Total reserves P 1 050 000

Note 9 – Retained earnings

Retained earnings, beginning P 1 500 000


Retained earnings, treasury ( 300 000)

Retained earnings, ending P 1 200 000

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