Additional information: 1. The company uses a perpetual system 2. The company uses control accounts for selling and administrative expenses. 3. The company records and posts its adjusting entries to its account only at year-end 4. Uncollectible accounts average 0.5% of net sales. 5. The P400K note receivable was received on March 1, 2019. The 6-month note carries an annual interest rate of 12%, the interest to be collected at the maturity date. 6. The balance in the prepaid insurance account represents payment made on January 1, 2019, for a 1-year comprehensive insurance policy. 7. The property and equipment account consists of land, P500K; buildings, P5.5M; and equipment, P2M. The buildings are depreciated over a 25-year life; the equipment over an 8-year life. Straight-line depreciation is used; residual value is disregarded. No acquisitions have made in 2019. The depreciation on the buildings is treated as an administrative expense; depreciation on the equipment as a selling expense. 8. On February 1, 2019, the company rented some floor space to another company, receiving 1 year’s rent of P180K in advance. 9. The bonds pay an interest semiannually on January 1 and July 1. Straight-line amortization of the discount is recorded at the end of each year. 10. The company estimates that its pretax income for the second half of 2019 will total P1.155M. All items in income are subject to the same income tax rate schedule. Th income tax rate schedule is 15% on the first P2M of the taxable income and 30% on the excess. There is no difference between the company’s income tax rate to the nearest tenth of a percent. Income taxes will be paid during the first quarter of 2020. 11. On June 29, 2019, the company had declared and recorded a semiannual dividend of P.40 per share, payable on August 3, 2019. 12. The 8,000 shares of common stock have been outstanding the entire six months of 2019. QUESTIONS: ANSWER THE FF -How much is the net income for the first half of 2019? -How much should be recognized as the total for retained earnings as of June 30, 2019? -What is the total amount of assets as of June 30, 2019? -What is the total amount of liabilities as of June 30, 2019?
Additional information:
1. The company uses a perpetual system
2. The company uses control accounts for selling and administrative expenses.
3. The company records and
4. Uncollectible accounts average 0.5% of net sales.
5. The P400K note receivable was received on March 1, 2019. The 6-month note carries an annual interest rate of 12%, the interest to be collected at the maturity date.
6. The balance in the prepaid insurance account represents payment made on January 1, 2019, for a 1-year comprehensive insurance policy.
7. The property and equipment account consists of land, P500K; buildings, P5.5M; and equipment, P2M. The buildings are
8. On February 1, 2019, the company rented some floor space to another company, receiving 1 year’s rent of P180K in advance.
9. The bonds pay an interest semiannually on January 1 and July 1. Straight-line amortization of the discount is recorded at the end of each year.
10. The company estimates that its pretax income for the second half of 2019 will total P1.155M. All items in income are subject to the same income tax rate schedule. Th income tax rate schedule is 15% on the first P2M of the taxable income and 30% on the excess. There is no difference between the company’s income tax rate to the nearest tenth of a percent. Income taxes will be paid during the first quarter of 2020.
11. On June 29, 2019, the company had declared and recorded a semiannual dividend of P.40 per share, payable on August 3, 2019.
12. The 8,000 shares of common stock have been outstanding the entire six months of 2019.
QUESTIONS: ANSWER THE FF
-How much is the net income for the first half of 2019?
-How much should be recognized as the total for
-What is the total amount of assets as of June 30, 2019?
-What is the total amount of liabilities as of June 30, 2019?
Step by step
Solved in 4 steps with 7 images
