Question

Technologies Limited (ATL) is preparing its Statement of Financial Position (SFP) as at December 31, 2020....

Technologies Limited (ATL) is preparing its Statement of Financial Position (SFP) as at December 31, 2020. The following items are under consideration.

  1. Rent received in advance for the first quarter of 2021, $20,000.

  1. $400,000 bonds payable bearing interest at 8% per annum, maturing December 31 2024. The unamortized balance of the premium was $10,000 at the end of 2020.

  1. Management’s valuation of internally generated goodwill, $74,000.

  1. Long-term note payable, $250,000, issued on June 30, 2017 and maturing June 30, 2021. Interest at 6% must be paid June 30 of each year.

  1. On January 20, 2021, prior to finalizing the 2020 financial statements, ATL issued new preferred shares to a private equity fund for $1,400,000. The new shares increased the equity base of ATL by almost 30%. The fund will be used to retire existing long-term debt and for new production processes.

Required:

For each item listed above, complete the table below to show how the item and any corresponding amount involved would be reported on ATL’s December 31, 2020 Statement of Financial Position. If an item is not to be reported, explain why.

Item

Description

Amount

(a)

(b)

(c)

(d)

(e)
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