Kunkun Inc. reported the following increase(decrease) in the account balances for the current year: Cash P 1,500,000 Equipment P3,000,000 Accounts receivable 3,500,000 Accounts payable (800,000) Inventory 3,900,000 Bonds payable 2,000,000 Investments (1,000,000) During the year, the entity sold for cash 100,000 shares with P20 par for P30 per share. Dividend of P4,500,000 was paid in cash. The entity borrowed P4,000,000 from the bank and paid off note of P1,000,000 and interest of P600,000. The entity had no other loan payable. Interest of P400,000 was payable on December 31. Interest payable on January 1 was P100,000. Equipment of P2,000,000 was donated by shareholder during the year. What was the net income for the year?
Kunkun Inc. reported the following increase(decrease) in the account balances for the
current year:
Cash P 1,500,000
Equipment P3,000,000
Accounts receivable 3,500,000
Accounts payable (800,000)
Inventory 3,900,000
Bonds payable 2,000,000
Investments (1,000,000)
During the year, the entity sold for cash 100,000 shares with P20 par for P30 per share. Dividend
of P4,500,000 was paid in cash. The entity borrowed P4,000,000 from the bank and paid off note
of P1,000,000 and interest of P600,000. The entity had no other loan payable. Interest of
P400,000 was payable on December 31. Interest payable on January 1 was P100,000.
Equipment of P2,000,000 was donated by shareholder during the year. What was the net
income for the year?
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