JJJ Co. was incorporated on January 1, 20x1. The following were the transactions during the year: Total consideration from share issuances amounted to P2,000,000. · A land and building were acquired through a lump sum payment of P400,000. A mortgage amounting to P100,000 was assumed on the land and building. Total payments of P80,000 were made during the year on the mortgage assumed on the land and building, The payments are inclusive of interest amounting to P10,000. Additional capital of P200,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. There is no accrued interest as of year-end. Dividends declared during the year but remained unpaid amounted to P60,000. • No other transactions during the year affected liabilities. Retained earnings as of December 31, 20x1 is P120,000.

JJJ Co. was incorporated on January 1, 20x1. The following were the transactions during the year: Total consideration from share issuances amounted to P2,000,000. · A land and building were acquired through a lump sum payment of P400,000. A mortgage amounting to P100,000 was assumed on the land and building. Total payments of P80,000 were made during the year on the mortgage assumed on the land and building, The payments are inclusive of interest amounting to P10,000. Additional capital of P200,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. There is no accrued interest as of year-end. Dividends declared during the year but remained unpaid amounted to P60,000. • No other transactions during the year affected liabilities. Retained earnings as of December 31, 20x1 is P120,000.

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

JJJ Co. was incorporated on January 1, 20x1. The following were the
transactions during the year:
Total consideration from share issuances amounted to P2,000,000.
· A land and building were acquired through a lump sum payment of
P400,000. A mortgage amounting to P100,000 was assumed on the
land and building.
Total payments of P80,000 were made during the year on the
%.
mortgage assumed on the land and building, The payments are
inclusive of interest amounting to P10,000.
· Additional capital of P200,000 was obtained through bank loans.
None of the bank loans were paid during the year. Half of the bank
loans required a secondary mortgage on the land and building.
There is no accrued interest as of year-end.
Dividends declared during the year but remained unpaid amounted to
P60,000.
• No other transactions during the year affected liabilities.
• Retained earnings as of December 31, 20x1 is P120,000.
How much is the profit for the year?

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