Jaunty Coffee Company Balance Sheet and Income Statement

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GAAP BALANCE SHEET       

 

Assets        

Jaunty Coffee Company        2012

Current assets:         

Cash          86,100 

Short-term investments (available for sale)          15,000 

Accounts receivable          37,000 

Notes receivable          25,000 

Inventory          75,000 

Other current assets          34,500 

Total current assets          272,600 

 

Long-term assets         

Long-term investments          100,000 

Property, plant, and equipment      116,000     

Less accumulated depreciation      (34,800)     81,200 

 

Intangible assets         

Goodwill      12,000     

Copyright      7,000     

Trademark      17,000     

Accumulated amortization      (7,200)     28,800 

Total long-term assets               208,000 

 

Total assets          482,600 

 

Liabilities and stockholders’ equity         

 

Current liabilities         

Accounts payable          30,000 

Accrued expenses          20,000 

Short/Current long-term debt          8,000 

Taxes payable          12,000 

Other current liabilities          12,000 

Total current liabilities          82,000 

 

 

Long-term liabilities         

Notes payable          17,000 

Bonds payable          34,500 

Deferred long-term liability charges          12,000 

Other long-term liabilities          13,000 

Total long-term liabilities          76,500 

 

Total liabilities          158,500 

 

Stockholders’ equity         

Common stock          200,000 

Retained earnings          124,100 

Total stockholders’ liability          324,100 

Total liabilities and stockholders’ equity          482,600 

IFRS BALANCE SHEET        

 

 

 

 

Assets        

Jaunty Coffee Company        2012

Current assets:         

Cash         

Short-term investments (available for sale)         

Accounts receivable         

Notes receivable         

Inventory         

Other current assets         

Total current assets         

 

Long-term assets         

Long-term investments         

Property, plant, and equipment            

Less accumulated depreciation         

 

Intangible assets         

Goodwill         

Copyright         

Trademark         

Accumulated amortization         

Total long-term assets              

 

Total assets         

 

Liabilities and stockholders’ equity         

 

Current liabilities         

Accounts payable         

Accrued expenses         

Short/Current long-term debt         

Taxes payable         

Other current liabilities         

Total current liabilities         

 

 

Long-term liabilities         

Notes payable         

Bonds payable         

Deferred long-term liability charges         

Other long-term liabilities         

Total long-term liabilities         

 

Total liabilities         

 

Stockholders’ equity         

Common stock         

Retained earnings         

Total stockholders’ liability         

Total liabilities and stockholders’ equity         

DIFFERENCES BETWEEN GAAP AND IFRS        

 

 

 

 

Assets        

Jaunty Coffee Company        2012

Current assets:         

Cash         

Short-term investments (available for sale)         

Accounts receivable         

Notes receivable         

Inventory         

Other current assets         

Total current assets         

 

Long-term assets         

Long-term investments         

Property, plant, and equipment         

Less accumulated depreciation         

 

Intangible assets         

Goodwill         

Copyright         

Trademark         

Accumulated amortization         

Total long-term assets              

 

Total assets         

 

Liabilities and stockholders’ equity         

 

Current liabilities         

Accounts payable         

Accrued expenses         

Short/Current long-term debt         

Taxes payable         

Other current liabilities         

Total current liabilities         

 

 

Long-term liabilities         

Notes payable         

Bonds payable         

Deferred long-term liability charges         

Other long-term liabilities         

Total long-term liabilities         

 

Total liabilities         

 

Stockholders’ equity         

Common stock         

Retained earnings         

Total stockholders’ liability         

Total liabilities and stockholders’ equity         

Additional Information         

 

 

 

 

1.  Short-term Investments (Available for Sale): In 2012 there were $4,000 in short-term investments, which was attributed to a gain in the exchange rate; this amount was included in the beginning value of $15,001.         

 

2.  Jaunty Coffee Company uses the LIFO method for inventory valuation. At the end of 2011 the inventory reserves were $35,000, and at the end of 2012 the reserves were $45,000.         

 

3.  Long-term contingencies lawsuit most likely will be awarded for $10,000.           

 

4.  The tax rate is 35%.         

 

5.  FMV- Goodwill is $15,000; Copyright is $10,000; and Trademark is $20,000.         

 

6.  Flood damage, which is considered extraordinary, created a loss of $15,000.         

 

7.  PPE & Intangible assets – Straight-line depreciation/amortization method; 10 years useful life; no salvage value         

 

8.  Impairments: 2010 Copyright  $4,400 ;  2011 Goodwill $5,400;  2009 Trademark $6,400         

6,400         

Jaunty Coffee Co. Income Statement        

 

 

 

 

 

 

For year ending Dec. 31, 2012        

 

Sales          290,000 

Cost of goods sold          100,000 

Gross profit          190,000 

 

Operating Expenses         

Selling Expenses           20,000 

Administrative Expenses              25,000 

Depreciation Expense              11,600 

Amortization           3,600 

Total Operating Expenses           60,200 

 

Income from Operations          129,800 

 

Other Income         

Interest Income           5,000 

Dividend Income          10,000 

Income before Income Taxes                144,800 

 

Federal Income Tax         

Tax rate 35%          50,680 

 

Income before extraordinary items          94,120 

Extraordinary items (loss) net taxes -$5,250          (9,750)

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