Jerry Corporation The following are the account balances of Jerry Corporation for 2X20 and 2X21. 12/31/2X20 12/31/2X21 Accumulated depreciation P2,019,000 P2,674,000 Accounts payable 1,809,000 2,060,000 Accounts receivable 2,487,000 2,688,000 Cash 1,303,000 1,162,000 Common stock 4,998,000 4,998,000 Inventory 5,807,000 6,029,000 Long-term debt 7,790,000 8,200,000 Property, plant, and equipment 8,393,000 9,200,000 Retained earnings 1,374,000 1,147,000 Requirement: Using the given information, compute for the ff. 1. Statement of Financial Position for 2X20. 2. Statement of Financial Position for 2X21.
Jerry Corporation The following are the account balances of Jerry Corporation for 2X20 and 2X21. 12/31/2X20 12/31/2X21 Accumulated depreciation P2,019,000 P2,674,000 Accounts payable 1,809,000 2,060,000 Accounts receivable 2,487,000 2,688,000 Cash 1,303,000 1,162,000 Common stock 4,998,000 4,998,000 Inventory 5,807,000 6,029,000 Long-term debt 7,790,000 8,200,000 Property, plant, and equipment 8,393,000 9,200,000 Retained earnings 1,374,000 1,147,000 Requirement: Using the given information, compute for the ff. 1. Statement of Financial Position for 2X20. 2. Statement of Financial Position for 2X21.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Jerry Corporation
The following are the account balances of Jerry Corporation for 2X20 and 2X21.
12/31/2X20 12/31/2X21
Accumulated depreciation P2,019,000 P2,674,000
Accounts payable 1,809,000 2,060,000
Accounts receivable 2,487,000 2,688,000
Cash 1,303,000 1,162,000
Common stock 4,998,000 4,998,000
Inventory 5,807,000 6,029,000
Long-term debt 7,790,000 8,200,000
Property, plant, and equipment 8,393,000 9,200,000
Retained earnings 1,374,000 1,147,000
Requirement: Using the given information, compute for the ff.
1. Statement of Financial Position for 2X20.
2. Statement of Financial Position for 2X21.
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