Account balances acquired from the Opulent Company's ledger on December 31, 2018 is shown below: Accounts Payable Accounts Receivable P119,000 139,200 12,000 Advertising Expense Accumulated Depreciation-Buildings. 31,500 Allowance for Doubtful Accounts 2,550 Buildings. Capital Stock, P10 par Cash Dividends 315,000 450,000 Freight-In Insurance Expense Interest Expense Interest Revenue 45,750 12,000 10,500 2,100 5,295 1,335 Inventory, December 31, 2020 104,850 Land Long-Term Investments Mortgage Payable. Notes Payable--Short-Term Office Expense. Purchases Purchase Discounts Retained Earnings, December 31, 2020 13,695 Sales Sales Discounts Sales Returns 78,000 12,150 43,500 24,000 28,800 521,130 12,150 745,000 24,750 14,400 94,050 3,450 19,305 Selling Expense Supplies Expense Real Estate and Payroll Taxes
Account balances acquired from the Opulent Company's ledger on December 31, 2018 is shown below: Accounts Payable Accounts Receivable P119,000 139,200 12,000 Advertising Expense Accumulated Depreciation-Buildings. 31,500 Allowance for Doubtful Accounts 2,550 Buildings. Capital Stock, P10 par Cash Dividends 315,000 450,000 Freight-In Insurance Expense Interest Expense Interest Revenue 45,750 12,000 10,500 2,100 5,295 1,335 Inventory, December 31, 2020 104,850 Land Long-Term Investments Mortgage Payable. Notes Payable--Short-Term Office Expense. Purchases Purchase Discounts Retained Earnings, December 31, 2020 13,695 Sales Sales Discounts Sales Returns 78,000 12,150 43,500 24,000 28,800 521,130 12,150 745,000 24,750 14,400 94,050 3,450 19,305 Selling Expense Supplies Expense Real Estate and Payroll Taxes
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...
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![Account balances acquired from the Opulent
Company's ledger on December 31, 2018 is shown
below:
Accounts Payable
P119,000
139,200
12,000
Accounts Receivable
Advertising Expense
Accumulated Depreciation--Buildings .
31,500
Allowance for Doubtful Accounts
2,550
Buildings
Capital Stock, P10 par
Cash
Dividends
315,000
450,000
Freight-In.
Insurance Expense
Interest Expense
45,750
12,000
10,500
2,100
5,295
1,335
Interest Revenue
Inventory, December 31, 2020
104,850
Land
78,000
Long-Term Investments
Mortgage Payable
Notes Payable--Short-Term
Office Expense
Purchases
Purchase Discounts
12,150
43,500
24,000
28,800
521,130
12,150
Retained Earnings, December 31, 2020
13,695
Sales .
Sales Discounts
Sales Returns
Selling Expense
Supplies Expense
Real Estate and Payroll Taxes
745,000
24,750
14,400
94,050
3,450
19,305
20:41](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7820b350-7ee2-48c5-99d7-8496988623a6%2Fb6c04220-ea5c-46b8-bf63-d190e0e64305%2F3vfvrir_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Account balances acquired from the Opulent
Company's ledger on December 31, 2018 is shown
below:
Accounts Payable
P119,000
139,200
12,000
Accounts Receivable
Advertising Expense
Accumulated Depreciation--Buildings .
31,500
Allowance for Doubtful Accounts
2,550
Buildings
Capital Stock, P10 par
Cash
Dividends
315,000
450,000
Freight-In.
Insurance Expense
Interest Expense
45,750
12,000
10,500
2,100
5,295
1,335
Interest Revenue
Inventory, December 31, 2020
104,850
Land
78,000
Long-Term Investments
Mortgage Payable
Notes Payable--Short-Term
Office Expense
Purchases
Purchase Discounts
12,150
43,500
24,000
28,800
521,130
12,150
Retained Earnings, December 31, 2020
13,695
Sales .
Sales Discounts
Sales Returns
Selling Expense
Supplies Expense
Real Estate and Payroll Taxes
745,000
24,750
14,400
94,050
3,450
19,305
20:41
![Given adjustments on December 31, 2018 are
required as follows:
(a) The inventory on hand is P135,915.
(b) The allowance for doubtful accounts is to be
increased to a balance of P6,250.
(c) Buildings are depreciated at the rate of 5 percent
per year.
(d) Accrued selling expenses are P6,075.
(e) There are supplies of P1,050 on hand.
(f) Prepaid insurance at December 31, 2021, totals
P1,290.
(g) Accrued interest on long-term investments is
Р360.
(h) Accrued real estate and payroll taxes are P1,170.
(i) Accrued interest on the mortgage is P240.
() Income tax is estimated to be 30 percent of the
income before income tax (round to
nearest dollar).
A. SHOW SUPPORTING COMPUTATIONS AS TO THE
EFFECT OF
ADJUSTMENTS TO THE ACCOUNTS.
B. PREPARE.
1. STATEMENT OF OPERATIONS
2. STATEMENT OF FINANCIAL POSITION
20:42](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7820b350-7ee2-48c5-99d7-8496988623a6%2Fb6c04220-ea5c-46b8-bf63-d190e0e64305%2Fratcxrg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Given adjustments on December 31, 2018 are
required as follows:
(a) The inventory on hand is P135,915.
(b) The allowance for doubtful accounts is to be
increased to a balance of P6,250.
(c) Buildings are depreciated at the rate of 5 percent
per year.
(d) Accrued selling expenses are P6,075.
(e) There are supplies of P1,050 on hand.
(f) Prepaid insurance at December 31, 2021, totals
P1,290.
(g) Accrued interest on long-term investments is
Р360.
(h) Accrued real estate and payroll taxes are P1,170.
(i) Accrued interest on the mortgage is P240.
() Income tax is estimated to be 30 percent of the
income before income tax (round to
nearest dollar).
A. SHOW SUPPORTING COMPUTATIONS AS TO THE
EFFECT OF
ADJUSTMENTS TO THE ACCOUNTS.
B. PREPARE.
1. STATEMENT OF OPERATIONS
2. STATEMENT OF FINANCIAL POSITION
20:42
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