Entity A Statement of Comprehensive Income For the year ended December 31, 20x1 Sales 980,000 (440,000) 540,000 (40,000) (165,000) (132,000) (40,000) (33,000) Cost of sales GROSS PROFIT Depreciation expense Salaries expense Utilities expense Insurance expense Interest expense Gain on sale of equipment 40,000 170,000 PROFIT FOR THE YEAR Other comprehensive income 170,000 COMPREHENSIVE INCOME FOR THE YR. Additional information: • Equipment with carrying amount of P100,000 was sold for P140,000 resulting to a gain on sale of P40,000. Equipment costing P300,000 was acquired for cash. • Entity A obtaiņed a short-term loan of P120,000. • The owner provided additional contribution of P50,000 to the business. Requirement: I'repare the statement of cash flows using the indirect method of ling activities
Entity A Statement of Comprehensive Income For the year ended December 31, 20x1 Sales 980,000 (440,000) 540,000 (40,000) (165,000) (132,000) (40,000) (33,000) Cost of sales GROSS PROFIT Depreciation expense Salaries expense Utilities expense Insurance expense Interest expense Gain on sale of equipment 40,000 170,000 PROFIT FOR THE YEAR Other comprehensive income 170,000 COMPREHENSIVE INCOME FOR THE YR. Additional information: • Equipment with carrying amount of P100,000 was sold for P140,000 resulting to a gain on sale of P40,000. Equipment costing P300,000 was acquired for cash. • Entity A obtaiņed a short-term loan of P120,000. • The owner provided additional contribution of P50,000 to the business. Requirement: I'repare the statement of cash flows using the indirect method of ling activities
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare the statement of
Transcribed Image Text:Entity A
Statement of Comprehensive Income
For the year ended December 31, 20x1
Sales
980,000
(440,000)
540,000
Cost of sales
GROSS PROFIT
Depreciation expense
Salaries expense
Utilities expense
(40,000)
(165,000)
(132,000)
(40,000)
(33,000)
40,000
Insurance expense
Interest expense
Gain on sale of equipment
170,000
PROFIT FOR THE YEAR
Other comprehensive income ´
|COMPREHENSIVE INCOME FOR THE YR.
170,000
Additional information:
• Equipment with carrying amount of P100,000 was sold for
P140,000 resulting to a gain on sale of P40,000.
• Equipment costing P300,000 was acquired for cash.
Entity A obtaiņed a short-term loan of P120,000.
• The owner provided additional contribution of P50,000 to the
business.
Requirement:
Irepare the statement of cash flows using the indirect method of
Presenting cash flows from operating activities.
CS Scanned with CamScanner
Transcribed Image Text:The comparative statement o inancial position and statement of
comprehensive income of Entity A on December 31, 20x1 are
shown below:
Entity A
Statement of Financial Position
As of December 31, 20x1
Cash and cash equivalents
400,000
130,000
100,000
Trade and other receivables
60,000
Inventory
Prepaid assets
Total current assets
30,000
120,000
40,000
560,000
320,000
Property, plant & equipment
280,000
280,0000
440,000
Total noncurrent assets
440,000
TOTAL ASSETS
1,000,000
600,000
LIABILITIES
Trade and other payables
Short-term borrowings
330,000
390,000
120,000
Total current liabilities
510,000
330,000
EQUITY
Owner's capital
270,000
490,000
TOTAL LIABILITIES & EQUITY
600,000
1,000,000
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