FNSACC504: Financial Reports and Balance Sheet Analysis for Entities

This report analyzes the financial position of San Pedro Industries through the preparation of balance sheets in account, report, and IFRS formats. It presents classified balance sheets, detailing assets, liabilities, and owner's equity. The report includes journal entries for deferred tax and concludes with a summary of the financial reporting process. The analysis covers current and non-current assets and liabilities, providing a comprehensive overview of the company's financial standing. The report emphasizes the importance of financial reporting for decision-making and presents financial data in various formats to enhance understanding. This assignment is designed to provide a practical understanding of financial statement preparation and analysis for corporate entities.

FNSACC504 PREPARE
FINANCIAL REPORTS FOR
CORPORATE ENTITIES
ASSESSMENT 2

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
a. Classified balance sheet using the account format for San Pedro Industries........................3
b. Classified balance sheet using the Report format for San Pedro Industries...........................3
c. Classified balance sheet in IFRS-acceptable format for San Pedro Industries.......................5
Journal entries for deferred tax ..................................................................................................6
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Financial reports for the corporate entities assist in recording the financial information for
various decision making which consist of income statement, balance sheet and cash flow
statement. The balance sheet is the financial position statement which is being prepared by the
organisation for identifying their liquidity position at a particular date. This assignment will
provide the financial information through preparing the balance sheet into different formats
which consist of account, report and IFRS format.
MAIN BODY
a. Classified balance sheet using the account format for San Pedro Industries
Balance sheet using account format
Assets details Amount Liabilities Amount
Current assets:
Current
liabilities:
Account receivables 895
Account
payable 710
less: allowance for
uncollected accounts 95
Income tax
payable 105
Net account receivable 800
Dividend
payable 50
cash In bank 76 Total 865
prepaid expenses 46
Long term
liabilities
Merchandise Inventory 100 Notes payable 1000
Interest receivable 60
Unearned
revenue 125
petty cash 12 Total 1125
supplies 28 Total liabilities 1990
cash dividend declared 200
Owner's
equity:
Instalment receivable 120 retained 85

earnings
total current assets 1442 Common stock 90
Fixed assets
Income
summary 762
Building and equipment 1425
Additional paid
in capital 725
land 600 Total 1662
Notes receivable 475
patent 85
Total fixed assets 2585
Less : accumulated
depreciation 375
2210
Total assets 3652 Total 3652
b. Classified balance sheet using the Report format for San Pedro Industries
Balance sheet using report format
Particulars Amount
Assets
Current assets:
Account receivables 895
less: allowance for uncollected accounts 95
Net account receivable 800
cash In bank 76
prepaid expenses 46
Merchandise Inventory 100
Interest receivable 60
petty cash 12

supplies 28
cash dividend declared 200
Instalment receivable 120
total current assets 1442
Fixed assets
Building and equipment 1425
land 600
Notes receivable 475
patent 85
390
Total fixed assets 2585
Less : accumulated depreciation 375
2210
Total assets 3652
Liabilities
Current liabilities
Account payable 710
Income tax payable 105
Dividend payable 50
Total 865
Long term liabilities
Notes payable 1000
Unearned revenue 125
Total 1125
Total liabilities 1990
Owner's equity
retained earnings 85
Common stock 90
Income summary 762
Additional paid in capital 725

Total 1662
Total liabilities and owner's equity 3652
c. Classified balance sheet in IFRS-acceptable format for San Pedro Industries
Balance sheet using IFRS Format
Assets Notes June 30,2015
Non- current assets
Building and equipment 1425
land 600
Notes receivable 475
patent 85
Total fixed assets 2585
Less : accumulated depreciation 375
Total non – current assets 2210
Current assets
Account receivables 895
less: allowance for uncollected accounts 95
Net account receivable 800
cash In bank 76
prepaid expenses 46
Merchandise Inventory 100
Interest receivable 60
petty cash 12
supplies 28
cash dividend declared 200
Instalment receivable 120
total current assets 1442
Total assets 3652

Equity and liabilities
Owner's equity
retained earnings 85
Common stock 90
Income summary 762
Additional paid in capital 725
Total 1662
Non- current liabilities
Notes payable 1000
Unearned revenue 125
Total 1125
Current liabilities
Account payable 710
Income tax payable 105
Dividend payable 50
Total 865
Total liabilities and equity 3652
Journal entries for deferred tax
Particular Debit Credit
Income tax expense A/c Dr 105
To income tax payable A/c 105
CONCLUSION
From the above assignment, it has concluded about the financial position of San Pedro
industries with the help of preparing the balance sheet in different format which consisted of