Peaceful Enterprises financial statements for the year ended December 31, 2021 are authorized for issue on March 15, 2022. On February 1, 2022, a fire destroyed partially the production site of the company resulting to damages of P3,000,000, only P1,500,000 of which is covered by insurance. On March 1,2022, Peaceful issued additional 100,000 shares at P10 par value. On March 10,2022, a customer owing P500,000 to the company filed for bankruptcy. Theallowance of doubtful accounts amounting to P300,000 as of December 31 included P100,000 pertaining to the said customer. What amount should be adjusted on December 31, 2022 in relation to these events?
Peaceful Enterprises financial statements for the year ended December 31, 2021 are authorized for issue on March 15, 2022. On February 1, 2022, a fire destroyed partially the production site of the company resulting to damages of P3,000,000, only P1,500,000 of which is covered by insurance. On March 1,2022, Peaceful issued additional 100,000 shares at P10 par value. On March 10,2022, a customer owing P500,000 to the company filed for bankruptcy. Theallowance of doubtful accounts amounting to P300,000 as of December 31 included P100,000 pertaining to the said customer. What amount should be adjusted on December 31, 2022 in relation to these events?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Peaceful Enterprises financial statements for the year ended December 31, 2021 are authorized for issue on March 15, 2022. On February 1, 2022, a fire destroyed partially the production site of the company resulting to damages of P3,000,000, only P1,500,000 of which is covered by insurance. On March 1,2022, Peaceful issued additional 100,000 shares at P10 par value. On March 10,2022, a customer owing P500,000 to the company filed for bankruptcy. Theallowance of doubtful accounts amounting to P300,000 as of December 31 included P100,000 pertaining to the said customer. What amount should be adjusted on December 31, 2022 in relation to these events?
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