Honest Company was incorporated on January 1, 2020 with P5,000,000 from the issuance of share capital and borrowed funds of P1,500,000. During the first year, net loss was P2,500,000. On December 15, the entity paid a P500,000 cash dividend. On December 31, the liabilities had decreased to P1,800,000. On December 31, 2020, what amount should be reported as total assets?

Honest Company was incorporated on January 1, 2020 with P5,000,000 from the issuance of share capital and borrowed funds of P1,500,000. During the first year, net loss was P2,500,000. On December 15, the entity paid a P500,000 cash dividend. On December 31, the liabilities had decreased to P1,800,000. On December 31, 2020, what amount should be reported as total assets?

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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