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Financial Position for Accountants

Vivaldi Corporation's trial balance at December 31, 2010 is presented. From this, a statement of financial position, income statement, and retained earnings statement can be prepared for Vivaldi Corporation for the year ended December 31, 2010. The statement of financial position includes non-current assets such as long-term investments and property, plant, and equipment, current assets, total assets of $3,776,000, total equity of $1,019,000, non-current liabilities, current liabilities, and total liabilities of $2,757,000. The income statement presents the company's revenues, expenses, other income/expenses, and net income of $52,000. The retained earnings

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8K views3 pages

Financial Position for Accountants

Vivaldi Corporation's trial balance at December 31, 2010 is presented. From this, a statement of financial position, income statement, and retained earnings statement can be prepared for Vivaldi Corporation for the year ended December 31, 2010. The statement of financial position includes non-current assets such as long-term investments and property, plant, and equipment, current assets, total assets of $3,776,000, total equity of $1,019,000, non-current liabilities, current liabilities, and total liabilities of $2,757,000. The income statement presents the company's revenues, expenses, other income/expenses, and net income of $52,000. The retained earnings

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Alia Azhara
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© © All Rights Reserved
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E5 – 12 (Preparation Of a Statement Of Financial Position) Presented below is the trial balance of Vivaldi

Corporation at December 31, 2010.


Debit Credit
Cash $197,000
Sales $7,900
Trading Securities (at cost, $145,000) $153,000
Cost Of Goods Sold 4,800,000
Long-term Investments in Bonds 299,000
Long-term Investments in Share Capital – Ordinary 277,000
Short-term Notes Payable 90,000
Accounts Payable 455,000
Selling Expenses 2,000,000
Investment Revenue 63,000
Land 260,000
Buildings 1,040,000
Dividends Payable 136,000
Accrued Liabilities 96,000
Accounts Receivable 435,000
Accumulated Depreciation – Buildings 352,000
Allowance For Doubtful Accounts 25,000
Administrative Expenses 900,000
Interest Expense 211,000
Inventories 597,000
Provision for Pension (Long-term) 80,000
Long-term Notes Payable 900,000
Equipment 600,000
Bonds Payable 1,000,000
Accumulated Depreciation – Equipment 60,000
Franchise 160,000
Share Capital – Ordinary ($5 par) 1,000,000
Treasury Shares 191,000
Patent 195,000
Retained Earnings 78,000
Accumulated Other Comprehensive Income 80,000
Totals $12,315,000 $12,315,000

Instruction :
Prepare a statement of financial position at December 31, 2010, for Vivaldi Corporation. Ignore Income Taxes.
VIVALDI CORPORATION
STATEMENT OF FINANCIAL POSITION
For The Year Ended December 31, 2010
ASSETS
Non Current Assets
Long Term Investments
Long-term Investments in Bonds $ 299,000
Long-term Investments in Share Capital – Ordinary $ 277,000
Total Long Term Investments $ 576,000
Property, Plant, and Equipment
Land $260,000
Buildings $1,040,000
Less : Accumulated Depreciation – Buildings ( 352,000 ) 688,000
Equipment 600,000
Less : Accumulated Depreciation – Equipment ( 60,000 ) 540,000
Total Property, Plant, and Equipment $ 1,488,000
Intangible Assets
Franchise 160,000
Patent 195,000
Total Intangible Assets 355,000
Total Non Current Assets 2,419,000
Current Assets
Inventories 597,000
Accounts Receivable 435,000
Less : Allowance For Doubtful Accounts ( 25,000 ) 410,000
Trading Securities 153,000
Cash 197,000
Total Current Assets 1,357,000
TOTAL ASSETS $ 3,776,000

EQUITY & LIABILITIES


Equity
Share Capital Ordinary ($5 par) $1,000,000
Retained Earnings *** 130,000
Accumulated Other Comprehensive Income 80,000
Less : Treasury Shares ( 191,000 )
Total Equity 1,019,000
Liabilities
Non Current Liabilities
Bonds Payable 1,000,000
Long-term Notes Payable 900,000
Provision for Pensions 80,000
Total Non Current Liabilities 1,980,000
Current Liabilities
Short-term Notes Payable 90,000
Accounts Payable 455,000
Dividends Payable 136,000
Accrued Liabilities 96,000
Total Current Liabilities 777,000
Total Liabilities 2,757,000
TOTAL EQUITY & LIABILITIES $3,776,000
VIVALDI CORPORATION
INCOME STATEMENT
For The Year Ended December 31, 2010
Revenue
Sales $ 7,900,000
Cost Of Goods Sold ( 4,800,000 )
Gross Profit 3,100,000

Operating Expenses
Selling Expenses 2,000,000
Administrative Expenses 900,000
Total Expenses ( 2,900,000 )
Income From Operating 200,000

Other Income & Expenses


Investment Revenue 63,000
Interest Expense ( 211,000 )
Total Other Income & Expenses ( 148,000 )

Net Income 52,000

VIVALDI CORPORATION
RETAINED EARNINGS STATEMENT
For The Year Ended December 31, 2010
Retained Earnings, January 1, 2010 $ 78,000
Add : Net Income $ 52,000
Retained Earnings, December 31, 2010 $130,000*

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