Required: Statement of financial position as at December 31, 2020. Relevant information are as follows: 1) Dividends of 5% were declared on June 30 and on December 31, 2020. 2) All depreciable assets should be depreciated at 10% per year. 3) Doubtful accounts are estimated to be 5% of year-end accounts receivable. The accounts receivable totaled P200,000 on December 31, 2020. 4) Cash receipts for 2020 are summarized as follows: Advances from customers P 70,000 Cash sales and collections from accounts receivable 2,960,000 Sales of equipment on December 31, 2020 costing P50,000 on which P30,000 of depreciation had been accumulated 45,000 P3,075,000 5) Cash disbursements for 2020 are summarized as follows: Insurance premium P 80,000 Purchase of equipment on October 1 200,000 Cash purchases and payments on accounts payable 1,640,000 Salaries 390,000 Dividends paid 125,000 Other expenses 135,000 P2,570,000 6) Additional data on December 31, 2020 are as follows: Inventory P245,000 Prepaid insurance 25,000 Advances from customers 50,000 Accrued salaries 30,000 Accounts payable 100,000
Required:
Relevant information are as follows:
1) Dividends of 5% were declared on June 30 and on December 31, 2020.
2) All
3) Doubtful accounts are estimated to be 5% of year-end
on December 31, 2020.
4) Cash receipts for 2020 are summarized as follows:
Advances from customers P 70,000
Cash sales and collections from accounts receivable 2,960,000
Sales of equipment on December 31, 2020 costing
P50,000 on which P30,000 of depreciation
had been accumulated 45,000
P3,075,000
5) Cash disbursements for 2020 are summarized as follows:
Insurance premium P 80,000
Purchase of equipment on October 1 200,000
Cash purchases and payments on accounts payable 1,640,000
Salaries 390,000
Dividends paid 125,000
Other expenses 135,000
P2,570,000
6) Additional data on December 31, 2020 are as follows:
Inventory P245,000
Prepaid insurance 25,000
Advances from customers 50,000
Accrued salaries 30,000
Accounts payable 100,000
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