Groom Company began operations on January 1, 2021 with P 1,000,000 from the issuance of shares and borrowed funds of P 450,000. Net income for 2021 was P 300,000 and Groom paid a P 225,000 cash dividend on December 19, 2011. No additional transactions affected owners’ equity in 2021. At December 31, 2021, liabilities of the company had increased to P 597,000. In Groom’s December 31, 2021 balance sheet, how much should be reported as its total assets?   a. P 1,525,000 b. P 1,672,000 c. P 1,750,000 d. P 1,760,000

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18E: Monona Company reported net income of 29,975 for 2019. During all of 2019, Monona had 1,000 shares...
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Groom Company began operations on January 1, 2021 with P 1,000,000 from the issuance of shares and borrowed funds of P 450,000. Net income for 2021 was P 300,000 and Groom paid a P 225,000 cash dividend on December 19, 2011. No additional transactions affected owners’ equity in 2021. At December 31, 2021, liabilities of the company had increased to P 597,000. In Groom’s December 31, 2021 balance sheet, how much should be reported as its total assets?
 
a. P 1,525,000
b. P 1,672,000
c. P 1,750,000
d. P 1,760,000
 
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