Rain and Bow Company was incorporated on January 1, 2019 with proceeds from the issuance of P7,500,000 in share capital and borrowed funds of P1,100,000 During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000. On December 15, 2019, the entity declared a P300,000 dividend, payable to shareholders on January 15, 2020. The liabilities increased to P2,000,000 by December 31, 2019. On December 31, 2019, what should be reported as total assets? a. 11,000,000 b. 11,300,000 c. 10,100,000 d. 12,100,000
Rain and Bow Company was incorporated on January 1, 2019 with proceeds from the issuance of P7,500,000 in share capital and borrowed funds of P1,100,000 During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000. On December 15, 2019, the entity declared a P300,000 dividend, payable to shareholders on January 15, 2020. The liabilities increased to P2,000,000 by December 31, 2019. On December 31, 2019, what should be reported as total assets? a. 11,000,000 b. 11,300,000 c. 10,100,000 d. 12,100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rain and Bow Company was incorporated on January 1, 2019 with proceeds from the issuance of P7,500,000 in share capital and borrowed funds of P1,100,000
During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000.
On December 15, 2019, the entity declared a P300,000 dividend, payable to shareholders on January 15, 2020. The liabilities increased to P2,000,000 by December 31, 2019.
On December 31, 2019, what should be reported as total assets?
a. 11,000,000
b. 11,300,000
c. 10,100,000
d. 12,100,000
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