RELAX COMPANY PROVIDED THE FOLLOWING INFORMATION FOR THE PURPOSE OF PRESENTING THE STATEMENT OF FINANCIAL POSITION ON DECEMBER 31 2014: CASH…

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.

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