provide balance sheet Cash12,582Accounts receivable155,865184,378Merchandise inventoryPrepaid asset30,000Land500,500Building360,000Accum. depn. - building120.000Equipment123,200Accum. depn. - equipment12,320Accounts payable148,756Accrued expenses48,732Short-term loan payable80,000240,000Long-term loan payableCapital stock500.000Retained earnings216,717The following transactions occurred in1. IE Company sold merchandise worth P30,000 at 100% margin. The customer paid in cash.2. IE Company sold, on credit, merchandise worth P60,000 for $105,000.3. IE Company bought merchandise worth P50,000 paying 25% in cash and the remainder undercredit.4. IE Company recorded salaries expense amounting to P25,000 in 2022. All but 10% remainunpaid as of year-end.5. The accrued expenses as of end-2021 pertains to unpaid utilities. The entire amount wassubsequently paid in 2022.6. The prepaid asset pertains to a three-year insurance policy covering 2022, 2023 and 2024.P10,000 for the insurance coverage in 2022 was recognized as expense.7. The entity took out a four-year loan in 2021 payable in equal annual installments of P80,000.The short-term portion recorded as of end-2021 was fully paid in 2022. Corresponding interestpayment amounting to P6,000 was also made. (Hint: In preparing the balance sheet, recognize andpresent separately the portion of the loan maturing within the next 12 months as current.)8. The building and equipment recorded depreciation of P120,000 and P24,640 during the year.9. IE Company collected P225,000 of accounts receivable and paid P58,000 of accounts payable.-

Income statement and balance sheet are two important financial statements which are prepared for the…

Answered: 30,000 500,500 360,000 120.000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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provide balance sheet

Cash
12,582
Accounts receivable
155,865
184,378
Merchandise inventory
Prepaid asset
30,000
Land
500,500
Building
360,000
Accum. depn. - building
120.000
Equipment
123,200
Accum. depn. - equipment
12,320
Accounts payable
148,756
Accrued expenses
48,732
Short-term loan payable
80,000
240,000
Long-term loan payable
Capital stock
500.000
Retained earnings
216,717
The following transactions occurred in
1. IE Company sold merchandise worth P30,000 at 100% margin. The customer paid in cash.
2. IE Company sold, on credit, merchandise worth P60,000 for $105,000.
3. IE Company bought merchandise worth P50,000 paying 25% in cash and the remainder under
credit.
4. IE Company recorded salaries expense amounting to P25,000 in 2022. All but 10% remain
unpaid as of year-end.
5. The accrued expenses as of end-2021 pertains to unpaid utilities. The entire amount was
subsequently paid in 2022.
6. The prepaid asset pertains to a three-year insurance policy covering 2022, 2023 and 2024.
P10,000 for the insurance coverage in 2022 was recognized as expense.
7. The entity took out a four-year loan in 2021 payable in equal annual installments of P80,000.
The short-term portion recorded as of end-2021 was fully paid in 2022. Corresponding interest
payment amounting to P6,000 was also made. (Hint: In preparing the balance sheet, recognize and
present separately the portion of the loan maturing within the next 12 months as current.)
8. The building and equipment recorded depreciation of P120,000 and P24,640 during the year.
9. IE Company collected P225,000 of accounts receivable and paid P58,000 of accounts payable.
-

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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