Relax Company provided the following information for the purpose of presenting the statement of financial position on December 31 2014:
|
Cash
|
400,000
|
|
Accounts receivable
|
500,000
|
|
allowance for doubtful accounts
|
50,000
|
|
inventories
|
1,000,000
|
|
land
|
500,000
|
|
building
|
5,000,000
|
|
accumulated depreciation-building
|
2,000,000
|
|
machinery
|
3,000,000
|
|
accumulated depreciation-machinery
|
1,200,000
|
|
equipment
|
400,000
|
|
accumulated depreciation-equipment
|
100,000
|
|
investment in associate
|
1,300,000
|
|
prepaid expenses
|
100,000
|
|
notes payable
|
750,000
|
|
accounts payable
|
350,000
|
|
income tax payable
|
50,000
|
|
accrued expenses
|
60,000
|
|
mortgage note payable in quarterly installments of 100,000
|
2,000,000
|
|
estimated liability for damages
|
140,000
|
|
retained earnings appropriated for plant expansion
|
1,000,000
|
|
retained earnings appropriated for contingencies
|
100,000
|
|
share capital
|
3,000,000
|
|
share premium
|
300,000
|
|
retained earnings unappropriated
|
1,250,000
|
|
trademark
|
150,000
|
|
secret processes and formulas
|
200,000
|
|
bank loan payable - due June 30, 2016
|
500,000
|
Required:
prepare in good form a properly classified statement of financial position on December 31, 2014 with supporting notes and computations.