An entity was incorporated on January 1, 2019 with proceeds from the issuance of P7,500,000 in shares and borrowed funds of P1,100,000. During the first year of operations, revenue from sales and consulting amounted to P820,000, and operating costs and expenses totaled P640,000. On December 15, the entity declared a P30,000 cash dividend, payable to shareholders on January 15, 2020. No additional activities affected owners’ equity in 2019. The liabilities increased to P1,200,000 by December 31, 2019. What amount should be reported as total assets on December 31, 2019?
An entity was incorporated on January 1, 2019 with proceeds from the issuance of P7,500,000 in shares and borrowed funds of P1,100,000. During the first year of operations, revenue from sales and consulting amounted to P820,000, and operating costs and expenses totaled P640,000. On December 15, the entity declared a P30,000 cash dividend, payable to shareholders on January 15, 2020. No additional activities affected owners’ equity in 2019. The liabilities increased to P1,200,000 by December 31, 2019. What amount should be reported as total assets on December 31, 2019?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Problem 2 (Total assets)
An entity was incorporated on January 1, 2019 with proceeds from the issuance of P7,500,000 in shares and borrowed funds of P1,100,000. During the first year of operations, revenue from sales and consulting amounted to P820,000, and operating costs and expenses totaled P640,000. On December 15, the entity declared a P30,000 cash dividend, payable to shareholders on January 15, 2020. No additional activities affected owners’ equity in 2019. The liabilities increased to P1,200,000 by December 31, 2019.
What amount should be reported as total assets on December 31, 2019?
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