John Emmanuel Medina ABM – Ford

Problem 3.2
YVONE Trading
Statement of Financial Position
As of December 31, 2018

ASSETS
Current Assets
Cash and cash equivalents (Note 1) ₱ 2,175,000
Trade and other receivables (Note 2) 3,465,000
Merchandise inventory 1,275,000
Trading securities 300,000
Prepaid expenses (Note 3) 165,000
Total current assets ₱ 7,380,000
Non-current assets
Property, plant and equipment (Note 4) ₱ 6,750,000
Long-term investments (Note 5) 1,552,500
Intangible asset (Note 6) 637,500
Other non-current assets (Note 7) 1,425,000
Total non-current assets ₱10,365,000
Total assets ₱17,745,000
LIABILITIES and OWNER’S EQUITY
Current liabilities
Trade and other payables (Note 8) ₱ 3,525,000
Warranty payable 225,000
Deferred tax liability 75,000
Total current liabilities ₱ 3,825,000
Non-current liabilities
Bonds payable ₱ 4,500,000
Total non-current liabilities ₱ 4,500,000
Total liabilities ₱ 8,325,000
Owner’s Equity
Jenny, Capital ₱10,120,000
Less: Jenny, Drawing (700,000)
Total owner’s equity ₱ 9,420,000

Total liabilities and owner’s equity ₱17,745,000

 YVONE Trading
Notes to Financial Statement
As of December 31, 2018

Note 1 – Cash and Cash Equivalents

Cash in bank ₱ 1,050,000
Cash on hand awaiting deposit 375,000
Time deposit 750,000
Total cash and cash equivalents ₱ 2,175,000

Note 2 – Trade and Other Receivables

Accounts receivable – trade ₱ 1,500,000
Allowance for doubtful accounts 150,000
Notes receivable – trade 1,875,000
Accrued interest on notes receivable 90,000
Claims receivable 150,000
Total trade and other receivables ₱ 3,465,000

Note 3 – Prepaid Expenses

Office supplies ₱ 30,000
Prepaid insurance 135,000
Total prepaid expenses ₱ 165,000

Note 4 – Property, Plant and Equipment

Building ₱ 4,500,000
Less: Accumulated depreciation – building (1,125,000)
Machinery 2,250,000
Less: Accumulated depreciation – machinery (750,000)
Land 1,875,000
Total property, plant and equipment ₱ 6,750,000

Note 5 – Long-term Investments

Investment in stocks ₱ 900,000
Investment in bonds 375,000
Sinking fund 187,500
Cash surrender value 90,000
Total long-term investments ₱ 1,552,500

Note 6 – Intangible Asset

Goodwill ₱ 637,500
Total intangible asset ₱ 637,500
Note 7 – Other Non-current Assets
Advances to officers ₱ 1,350,000
Refundable deposit of customers 75,000
Total other non-current assets ₱ 1,425,000

Note 8 – Trade and Other Payables

Accounts payable ₱ 1,875,000
Notes payable – trade 1,125,000
Income tax payable 187,500
Withholding tax payable 112,500
SSS payable 225,000
Total trade and other payables ₱ 3,525,000