Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:McGraw Company provided the following account balances on December 31, 2023:
Accounts payable, P125,000; Accrued taxes, P50,000; Cash surrender value of life insurance, P30,0003;
Ordinary share capital, P1,000,000; Share dividend payable-ordinary, P150,000; Mortgage payable
(P200,000 due in six months), P1,200,000; Notes payable-20%, due on January 2, 2024, P1,500,000;
Share premium-ordinary, P250,000; Preference liability, P450,000; Accumulated profits-December 31,
2023, P550,000; Unearned rent income, P25,000; Dividends payable-preference liability, P100,000. How
much should McGraw report as Shareholders' equity on December 31, 2023?
A. 1,900,000
B. 1,950,000
C. 2,050,000
D. 2,500,000
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