500,000.00 84,800.00 Stockholder's Common S Retained B

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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Get balance sheet as of december 2021 and income statement for the year
A new merchandising business, Dazzle Corporation started its operations last January 1, 2020.
Presented below is information concerning the financial condition of Dazzle Corporation for the
calendar year 2020:
Dazde Corporation
Balance Sheet
As of December 31, 2020
ASSETS
LIABILITIES & STOCKHOLDER'S EQUITY
Current Liabilities
P 253,700.00
P 124,000.00
150,000.00
120,000.00
16,900.00
500.00
63,840.00
15,000.00
405,600.00
338, 340.00
500,000.00
450,750.00
84,800.00
185,310.00
P636,060.00
16,000.00
P568,800.00
TOTAL LIABILITIES &
TOTAL ASSETS
P974,400.00
STOCKHOLDER'S EQUITY
P974,400.00
The following transactions has transpired during 2021:
a. Furniture & fixtures was purchased on credit for Php50,000.
b. Merchandise costing Php202,560 was bought, 50% was paid in cash and the remaining on
account.
c. Sold merchandise for Php150,000. The company maintains a mark-up of 60% based on cost.
d. Utility bills for the year is Php5,368.
Additional Information:
e. The following fixed assets are as follows:
Initial Cost
Accumulated
Depreciation (as of
Dec. 31, 2020)
Estimated Useful
Life
Residual Value
16,000
Building & Equipment 84,800
5 yrs.
4,800
Furniture & Fixtures
50,000
0
5 yrs.
1,000
All fixed assets are depreciated using straight line method.
f. Unexpired insurance at the end of the year is Php14,000.
Current Assets
Cash
Accounts Receivable
Merchandise Inventory
Prepaid Insurance
Total Current Assets
Noncurrent Assets
Land
Building & Equipment
Less: Accumulated Depreciation -
Building & Equipment
Net Noncurrent Amets
Accounts Payable
Deferred Income
Wages Payable
Bank Loans Payable
Total Current Liabilities
Stockholder's Equity
Common Stocks
Retained Earnings
Total Stockholder's Equity
Transcribed Image Text:A new merchandising business, Dazzle Corporation started its operations last January 1, 2020. Presented below is information concerning the financial condition of Dazzle Corporation for the calendar year 2020: Dazde Corporation Balance Sheet As of December 31, 2020 ASSETS LIABILITIES & STOCKHOLDER'S EQUITY Current Liabilities P 253,700.00 P 124,000.00 150,000.00 120,000.00 16,900.00 500.00 63,840.00 15,000.00 405,600.00 338, 340.00 500,000.00 450,750.00 84,800.00 185,310.00 P636,060.00 16,000.00 P568,800.00 TOTAL LIABILITIES & TOTAL ASSETS P974,400.00 STOCKHOLDER'S EQUITY P974,400.00 The following transactions has transpired during 2021: a. Furniture & fixtures was purchased on credit for Php50,000. b. Merchandise costing Php202,560 was bought, 50% was paid in cash and the remaining on account. c. Sold merchandise for Php150,000. The company maintains a mark-up of 60% based on cost. d. Utility bills for the year is Php5,368. Additional Information: e. The following fixed assets are as follows: Initial Cost Accumulated Depreciation (as of Dec. 31, 2020) Estimated Useful Life Residual Value 16,000 Building & Equipment 84,800 5 yrs. 4,800 Furniture & Fixtures 50,000 0 5 yrs. 1,000 All fixed assets are depreciated using straight line method. f. Unexpired insurance at the end of the year is Php14,000. Current Assets Cash Accounts Receivable Merchandise Inventory Prepaid Insurance Total Current Assets Noncurrent Assets Land Building & Equipment Less: Accumulated Depreciation - Building & Equipment Net Noncurrent Amets Accounts Payable Deferred Income Wages Payable Bank Loans Payable Total Current Liabilities Stockholder's Equity Common Stocks Retained Earnings Total Stockholder's Equity
a. Furniture & fixtures was purchased on credit for Php50,000.
b. Merchandise costing Php202,560 was bought, 50% was paid in cash and the remaining on
account.
c. Sold merchandise for Php150,000. The company maintains a mark-up of 60% based on cost.
d. Utility bills for the year is Php5,368.
Additional Information:
e. The following fixed assets are as follows:
Initial Cost
Accumulated
Depreciation (as of
Dec. 31, 2020)
Estimated Useful
Life
Residual Value
84,800
16,000
5 yrs.
Building & Equipment
4,800
0
50,000
5 yrs.
1,000
Furniture & Fixtures
All fixed assets are depreciated using straight line method.
f. Unexpired insurance at the end of the year is Php14,000.
g. Wages of employees worth Php2,500 was paid in cash. This includes the wages from last year.
h. Last year, Dazzle Corporation received an offer from local business owner to rent the unused
portion of its land. Dazzle Corporation agreed to rent the land for 5 years, payable in advance.
Dazzle Corporation received Php150,000 on December 31, 2020 and properly recorded the
amount as deferred income in its December 31, 2020 balance sheet.
e. The following fixed assets are as follows:
Initial Cost
Accumulated
Depreciation (as of
Dec. 31, 2020)
Estimated Useful
Life
Residual Value
Building & Equipment 84,800
16,000
5 yrs.
4,800
Furniture & Fixtures
50,000
0
5 yrs.
1,000
All fixed assets are depreciated using straight line method.
f. Unexpired insurance at the end of the year is Php14,000.
g. Wages of employees worth Php2,500 was paid in cash. This includes the wages from last year.
h. Last year, Dazzle Corporation received an offer from local business owner to rent the unused
portion of its land. Dazzle Corporation agreed to rent the land for 5 years, payable in advance.
Dazzle Corporation received Php150,000 on December 31, 2020 and properly recorded the
amount as deferred income in its December 31, 2020 balance sheet.
Transcribed Image Text:a. Furniture & fixtures was purchased on credit for Php50,000. b. Merchandise costing Php202,560 was bought, 50% was paid in cash and the remaining on account. c. Sold merchandise for Php150,000. The company maintains a mark-up of 60% based on cost. d. Utility bills for the year is Php5,368. Additional Information: e. The following fixed assets are as follows: Initial Cost Accumulated Depreciation (as of Dec. 31, 2020) Estimated Useful Life Residual Value 84,800 16,000 5 yrs. Building & Equipment 4,800 0 50,000 5 yrs. 1,000 Furniture & Fixtures All fixed assets are depreciated using straight line method. f. Unexpired insurance at the end of the year is Php14,000. g. Wages of employees worth Php2,500 was paid in cash. This includes the wages from last year. h. Last year, Dazzle Corporation received an offer from local business owner to rent the unused portion of its land. Dazzle Corporation agreed to rent the land for 5 years, payable in advance. Dazzle Corporation received Php150,000 on December 31, 2020 and properly recorded the amount as deferred income in its December 31, 2020 balance sheet. e. The following fixed assets are as follows: Initial Cost Accumulated Depreciation (as of Dec. 31, 2020) Estimated Useful Life Residual Value Building & Equipment 84,800 16,000 5 yrs. 4,800 Furniture & Fixtures 50,000 0 5 yrs. 1,000 All fixed assets are depreciated using straight line method. f. Unexpired insurance at the end of the year is Php14,000. g. Wages of employees worth Php2,500 was paid in cash. This includes the wages from last year. h. Last year, Dazzle Corporation received an offer from local business owner to rent the unused portion of its land. Dazzle Corporation agreed to rent the land for 5 years, payable in advance. Dazzle Corporation received Php150,000 on December 31, 2020 and properly recorded the amount as deferred income in its December 31, 2020 balance sheet.
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