At the beginning of current year, Baket Company started business and issued share capital, 60,000 shares with P100 par, for the following considerations: Cash 500,000 4,500,000 Building with useful life of 15 years 1,500,000 6,500,000 Land An analysis of the bank statements showed total deposits, including the original cash investment of P3,500,000. The balance in the bank statement on December 31 was P250,000 but there were checks amounting P50,000 dated in December but not paid by the bank until January of next year. Cash on hand on December 31 was P125,000 including customers' deposit of P75,000. During the year, the entity borrowed P500,000 from the bank and repaid P125,000 and P25,000 interest. The proceeds of the loan were credited to the bank account of the entity. Disbursement paid in cash during the year were: 100,000 100,000 175,000 Utilities Salaries Supplies Taxes 25,000 Dividends 150,000 550,000 An inventory of merchandise taken on December 31 shoed P755,000 of merchandise. Tickets for accounts receivable totaled P990,000 but P50,000 of that amount may prove uncollectible Unpaid suppliers' invoices for merchandise amounted P350,000. Equipment with a cash price of P400,000 was purchased in early January on a one-year installment basis. During the year, checks for the down payment and all maturing installments totaled P445,000. The equipment has a useful life of 5 vears.
At the beginning of current year, Baket Company started business and issued share capital, 60,000 shares with P100 par, for the following considerations: Cash 500,000 4,500,000 Building with useful life of 15 years 1,500,000 6,500,000 Land An analysis of the bank statements showed total deposits, including the original cash investment of P3,500,000. The balance in the bank statement on December 31 was P250,000 but there were checks amounting P50,000 dated in December but not paid by the bank until January of next year. Cash on hand on December 31 was P125,000 including customers' deposit of P75,000. During the year, the entity borrowed P500,000 from the bank and repaid P125,000 and P25,000 interest. The proceeds of the loan were credited to the bank account of the entity. Disbursement paid in cash during the year were: 100,000 100,000 175,000 Utilities Salaries Supplies Taxes 25,000 Dividends 150,000 550,000 An inventory of merchandise taken on December 31 shoed P755,000 of merchandise. Tickets for accounts receivable totaled P990,000 but P50,000 of that amount may prove uncollectible Unpaid suppliers' invoices for merchandise amounted P350,000. Equipment with a cash price of P400,000 was purchased in early January on a one-year installment basis. During the year, checks for the down payment and all maturing installments totaled P445,000. The equipment has a useful life of 5 vears.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 11MCQ: Chasse Building Supply Inc. reported net cash provided by operating activities of $243,000, capital...
Related questions
Topic Video
Question
1. What is the amount of sales for the year?
2. What is the amount of purchases for the year?
3. What is the net income for the year?
5. What is the amount of shareholders' equity on December 31?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning