Activity: The following were taken from the books of Alena Company.
\begin{tabular}{|l|l|l|l|}
\hline Long-term liability & 500,000 & Owner's Capital & [tex]$?$[/tex] \\
\hline Notes Payable & 120,000 & Unearned Income & 15,345 \\
\hline Property, Plant, and Equipment & 750,000 & Notes Receivable & 244,000 \\
\hline Accounts Payable & 65,000 & Prepaid Expense & 56,700 \\
\hline Accounts Receivable & 56,000 & Accrued Expense & 37,890 \\
\hline Accumulated Depreciation & 100,000 & Inventory & 157,840 \\
\hline Cash & 77,000 & Intangible Assets & 124,500 \\
\hline
\end{tabular}

Using the given data above, answer the following questions:

1. How much is the current asset to be reported in the SPF?
2. What are the total non-current assets to be reported?
3. What are the total assets to be reported?



Answer :

Sure! Let's analyze the data from Alena Company's books step-by-step to answer the questions about the assets to be reported.

### Step 1: Identify Current Assets
Current assets are those that are expected to be converted into cash, sold, or consumed within one year. From the given data, the current assets are:
- Notes Receivable: 244,000
- Prepaid Expense: 56,700
- Accounts Receivable: 56,000
- Inventory: 157,840
- Cash: 77,000

#### Calculation:
[tex]\[ \text{Current Assets} = \text{Notes Receivable} + \text{Prepaid Expense} + \text{Accounts Receivable} + \text{Inventory} + \text{Cash} \][/tex]
[tex]\[ = 244,000 + 56,700 + 56,000 + 157,840 + 77,000 \][/tex]
[tex]\[ = 591,540 \][/tex]

Answer to Question 1:
The current assets to be reported in the SPF are [tex]$591,540. ### Step 2: Identify Non-Current Assets Non-current assets, also known as fixed assets or long-term assets, are those which will provide benefits for more than one year. From the given data, the non-current assets are: - Property, Plant, and Equipment: 750,000 - Intangible Assets: 124,500 - Accumulated Depreciation (this is a contra asset account and should be subtracted): 100,000 #### Calculation: \[ \text{Non-Current Assets} = \text{Property, Plant, and Equipment} + \text{Intangible Assets} - \text{Accumulated Depreciation} \] \[ = 750,000 + 124,500 - 100,000 \] \[ = 774,500 \] Answer to Question 2: The non-current assets to be reported are $[/tex]774,500.

### Step 3: Calculate Total Assets
Total assets are the sum of current assets and non-current assets.

#### Calculation:
[tex]\[ \text{Total Assets} = \text{Current Assets} + \text{Non-Current Assets} \][/tex]
[tex]\[ = 591,540 + 774,500 \][/tex]
[tex]\[ = 1,366,040 \][/tex]

Answer to Question 3:
The total assets to be reported are $1,366,040.

By following these steps, we have identified and calculated the amounts of current assets, non-current assets, and total assets for Alena Company to be reported in the Statement of Financial Position.