Davao Company was incorporated on July 1, 2021, with P2,000,000 from the issuance of shares and borrowed funds of P300,000. During the remainder of 2021, the company's profit was P100,000. On December 15, Davao Company paid P8,000 cash dividends. No additional activities affected owner's equity in 2021. At December 31, 2021, Davao Company's liabilities had increased to P376,000. In Davao's December 31, 2021 statement of financial position, total assets should be reported at A P2,768,000 B P2,392,000 P2,468,000 P2.400.000

Davao Company was incorporated on July 1, 2021, with P2,000,000 from the issuance of shares and borrowed funds of P300,000. During the remainder of 2021, the company's profit was P100,000. On December 15, Davao Company paid P8,000 cash dividends. No additional activities affected owner's equity in 2021. At December 31, 2021, Davao Company's liabilities had increased to P376,000. In Davao's December 31, 2021 statement of financial position, total assets should be reported at A P2,768,000 B P2,392,000 P2,468,000 P2.400.000

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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