Problem 4. From the following information pertaining to Nonesuch Insurance Company for the year ended 31"December 2020 Particulars Amount (in R.O.) Claims under policies 60,000 Commission on direct business 30,000 Other commission paid 3,000 Other expenses of management: Salaries 24,000 Rent and Repairs 10,000 Salaries to director 14,000 Premiums after re-insurance 176,250 Interest, dividends on their 2,340 investments Commission on reinsurance ceded 4,500 Share Capital 120,000 Investments 100,000 Furniture and fixtures 60,000 Agents Balances 2,090 The following information is also available: Outstanding claims at the end of the period 31 Dec. 2020 5,000 Premiums collected in advance 25,000 Depreciation to be provided on Furniture 2,000 5,000 Rent and repairs outstanding for the current year Required: (a) Ascertain the net profit earned by the company by preparing income statement (b) Prepare Balance Sheet as on 31 December 2020

Problem 4. From the following information pertaining to Nonesuch Insurance Company for the year ended 31"December 2020 Particulars Amount (in R.O.) Claims under policies 60,000 Commission on direct business 30,000 Other commission paid 3,000 Other expenses of management: Salaries 24,000 Rent and Repairs 10,000 Salaries to director 14,000 Premiums after re-insurance 176,250 Interest, dividends on their 2,340 investments Commission on reinsurance ceded 4,500 Share Capital 120,000 Investments 100,000 Furniture and fixtures 60,000 Agents Balances 2,090 The following information is also available: Outstanding claims at the end of the period 31 Dec. 2020 5,000 Premiums collected in advance 25,000 Depreciation to be provided on Furniture 2,000 5,000 Rent and repairs outstanding for the current year Required: (a) Ascertain the net profit earned by the company by preparing income statement (b) Prepare Balance Sheet as on 31 December 2020

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

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 8RE

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Sprite Company had the following liabilities at December 31, 2019:Trade accounts payable, net of debit balances totaling P65,000 in supplier’saccounts P1,125,000Accrued expenses 136,000Interest payable 96,000Income tax payable 150,000Mortgage payable due in equal annual instalments until October 31, 2024 750,000Share dividends declared but not yet issued 300,000Notes payable (due on January 1, 2021) 250,000 How much is the total current liabilities of Sprite to be shown on its December 31, 2019 statement of financial position?a. P1,722,000 c. P2,207,000b. P1,272,000 d. P2,022,000
Problem 4. From the following information pertaining to Nonesuch Insurance Company for the year ended 31e December 2019 Particulars Amount (in R.O.) Claims under policies 60,000 Commission on direct business 30,000 Other commission paid 3,000 Other expenses of management: Salaries 24,000 Rent and Repairs 10,000 Salaries to director 14,000 Premiums after re-insurance 176,250 Interest, dividends on their 2,340 investments Commission on reinsurance ceded 4,500 Share Capital 120,000 Investments 100,000 Furniture and fixtures 60,000 Agents Balances 2,090 22 The following information is also available: Outstanding claims at the end of the period 31. Dec. 2018 5,000 Premiums collected in advance 25,000 Depreciation to be provided on 2,000 Furniture Rent and repairs outstanding for the 5,000 current year Required: (a) Ascertain the net profit earned by the company by preparing income statement (b) Prepare Balance Sheet as on 31st December 2019
Prince Corporations accounts provided the following information at December 31, 2019: What should be the current balance of retained earnings? a. 520,000 b. 580,000 c. 610,000 d. 670,000
l-Itihad Corporation Balance SheetDecember 31, 2019AssetsLiability & EquityCurrent AssetsCurrent LiabilityCash$5,000Accounts payable22,000Short term securities10,000Accrual Account8,000Account Receivables30,000Short term debt6,000Inventory32,000Total Current Liability36,000Long-term debt40,000Total Current Assets77,000TotalLiability76,000Long term AssetsEquityNet Property & equipment70,000CommonStocks64,000Retained earnings17,000Total Equity81,000Total Liability and Equity157,000Other assts 10000Total Assets157,000Sur Corporation Income StatementDecember 31, 2019Other Financial information of Sur corporation December 31, 2019Net sales (revenue)$150,000· Average Number of Common shares outstanding 16,000 Shares· Market price of Common share $3.5Cost of goods sold80,000Gross profit70,000Operating expenses30,000EBIT- (Operating profit)40,000Interest expense10,000EBT- ( Earnings before taxes)30,000Income tax 10,000Net Income (net profit)20,000You have to find the following ratios…
Problem 1-14 (AICPA Adapted) Dean Company has a P2,000,000 note payable due June 30. 2021. On December 31, 2020, the entity signed an agreement to borrow up to P2,000,000 to refinance the note payable on a long-term basis. The financing agreement called for borrowing not to exceed 80% of the value of the collateral the entity was providing. On December 31, 2020, the value of the collateral was P1,500,000. On December 31, 2020, what amount of the note payable should be reported as current liability? 2,000,000 1,500,000 800,000 500,000 a. b. с. 000 0600 d. Psoblem 1-15 (AICPA Adanted) Willem Company reported the following liabilities on December 31, 2020: Accounts payable Short-term borrowings Mortgage payable, current portion P100,000 Bank loan payable, due June 30, 2021 750,000 400,000 3,500,000 1,000,000 The P1,000,000 bank loan was refinanced with a 5-year loan on January 15, 2021, with the first principal payment due January 15, 2022. The financial statements were issued February…
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The following account balances are available from CCC Company at December 31, 2022: Accounts Payable – P25,000 Cash Surrender Value of Life Insurance – P29,000 Mortgage Payable (including P200,000 due in six months) – P1,200,000 Notes Payable, 10% (due on January 1, 2025) – P1,500,000 Premium on Notes Payable – P25,000 Ordinary Share, P100 par value – P1,000,000 Ordinary Share Premium – P250,000 Preference Share, P200 par value – P450,000 Dividends Declared - P250,000 Profit and Loss Summary, credit balance – P500,000 Retained Earnings (January 1, 2022) – P550,000 How much is the Total Assets at December 31, 2022?How much is the Current Liabilities at December 31, 2022?How much is the Non-Current Liabilities at December 31, 2022?How much is the Total Shareholders’ Equity at December 31, 2022 ?
1. PGold Company provided the following trial balance on December 2020: Total credits amounting to P3,000,000 as follows; Bank overdraft P100,000, Accounts Payable P200,000, Accrued expenses P150,000, Ordinary share capital P1,500,000, Share premium P250,000, Retained earnings P800,000. Total debits of P3,000,000 composed the following; Accounts receivable P350,000, Inventory P600,000, Prepaid expenses P100,000, Land held for sale P1,000,000, Property, plant & equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and recorded on December 29, 2020 resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2021. Land held for resale was sold for cash on January 31, 2021. The entity issued the financial statements on March 31, 2021. What is the total shareholders equity?
1. PGold Company provided the following trial balance on December 2020: Total credits amounting to P3,000,000 as follows; Bank overdraft P100,000, Accounts Payable P200,000, Accrued expenses P150,000, Ordinary share capital P1,500,000, Share premium P250,000, Retained earnings P800,000. Total debits of P3,000,000 composed the following; Accounts receivable P350,000, Inventory P600,000, Prepaid expenses P100,000, Land held for sale P1,000,000, Property, plant & equipment P950,000. Additional information: Checks amounting to 300,000 were written to vendors and recorded on December 29, 2020 resulting in a cash overdraft of P100,000. The checks were mailed on January 15, 2021. Land held for resale was sold for cash on January 31, 2021. The entity issued the financial statements on March 31, 2021. What total amount should be reported as as current liabilities?
1. On December 31, 2021, what total amount should be reported as current liabilities?* 14% Notes payable, due 2023 Accrued rent expenses Credit balances of customers' accounts Debit balances in suppliers' accounts Estimated premium liability Mortgage payable Serial bonds payable in semi-annual installment of P200,000 Unearned subscription income 30,000 5,000 11,000 7,000 62,000 100,000 2,000,000 20,000 A. 498,000 B. 505,000 C. 198,000 D. 578,000 E. NONE OF THEM
ACCT101 FALL 2020-2021 Collection of an R.O 1500 Accounts Receivable. The effect on the components of the basic accounting equation of the Company is: Select one: a. Decreases a liability R.O 1500; increases owner's equity R.O 1500. O b. Increases an asset R.O 1500; decreases an asset R.O 1500. c. Increases an asset R.O 1500; decreases a liability R.O 1500. O d. Decreases a liability R.O 1500; decreases a liability R.O 1500. e. Decreases an asset R.O 1500; decreases a liability R.O 1500. Nextage
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