BT21 Company disclosed the following changes: · Cash- P480,000 decrease · Accounts receivable- P300,000 increase · Merchandise inventory- P3,100,000 increase · Accounts payable- P420,000 increase During the year, the owner borrowed P4,000,000 in notes from the bank and paid of notes of P3,000,000 and interest of P240,000. Interest of P100,000 is accrued on December 31. There is no interest payable at the beginning of the year. Also, the owner transferred certain investment in equity securities to the business and these were sold for P1,500,000 to finance purchase of merchandise. The owner made a weekly withdrawal of P10,000. If there are 52 weeks in a year, what is the net income for the current year?

BT21 Company disclosed the following changes: · Cash- P480,000 decrease · Accounts receivable- P300,000 increase · Merchandise inventory- P3,100,000 increase · Accounts payable- P420,000 increase During the year, the owner borrowed P4,000,000 in notes from the bank and paid of notes of P3,000,000 and interest of P240,000. Interest of P100,000 is accrued on December 31. There is no interest payable at the beginning of the year. Also, the owner transferred certain investment in equity securities to the business and these were sold for P1,500,000 to finance purchase of merchandise. The owner made a weekly withdrawal of P10,000. If there are 52 weeks in a year, what is the net income for the current year?

Name: BT21 Company disclosed the following changes:· Cash- P480,000 decrease
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Description: BT21 Company disclosed the following changes:· Cash- P480,000 decrease· Accounts receivable- P300,000 increase· Merchandise inventory- P3,100,000 increase· Accounts payable- P420,000 increaseDuring the year, the owner borrowed P4,000,000 in notes fro

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter8: Revenue Recognition, Receivables, And Advances From Customers

Section: Chapter Questions

Problem 42P

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