Presented below is the statement of financial position of Millbrook Corporation for the current year, 2027.
Millbrook Corporation Statement of Financial Position December 31, 2027 |
|---|
| Investments | 768,000 | Equity | 2,124,000 |
| Property, Plant, and Equipment | 2,064,000 | Non-current Liabilities | 1,152,000 |
| Intangible Assets | 318,000 | Current Liabilities | 456,000 |
| Current Assets | 582,000 | | |
| 3,732,000 | | 3,732,000 |
The following information is presented.
- The current assets section includes cash $180,000, accounts receivable $204,000 less $12,000 for allowance for doubtful accounts, inventory $216,000, and unearned service revenue $6,000. Inventory is stated at the lower-of-FIFO-cost-or net realizable value.
- The investments section includes land held for speculation $48,000; investments in ordinary shares, short-term (trading) $96,000 and long-term (non-trading) $324,000; and bond sinking fund $300,000. The cost and fair value of investments in ordinary shares are the same.
- Property, Plant, and equipment includes buildings $1,248,000 less accumulated depreciation $432,000, equipment $540,000 less accumulated depreciation $216,000, land $600,000, and land held for future use $324,000.
- Intangible assets include a franchise $198,000 and goodwill $120,000.
- Current liabilities include accounts payable $168,000; notes payable-short-term $96,000 and long-term $144,000; and income taxes payable $48,000.
- Non-current liabilities are composed solely of 7% bonds payable due 2035.
- Equity has share capital-preference, $5 par value, authorized 240,000 shares, issued 108,000 shares for $540,000; and share capital-ordinary, $1 par value, authorized 480,000 shares, issued 120,000 shares at an average price of $10. In addition, the company has retained earnings of $384,000.
Instructions: Prepare a statement of financial position in good form, adjusting the amounts in each statement of financial position classification as affected by the information given above.