Moltres Company provided the following information for the preparation of financial statements for 2020: Balances - January 1, 2020 P 400,000 120,000 230,000 35,000 500,000 2,000,000 700,000 800,000 240,000 170,000 20,000 90,000 2,500,000 365,000 Cash Accounts receivable Inventory Prepaid insurance Land Building Accumulated depreciation - building Equipment Accumulated depreciation – equipment Accounts payable Accrued salaries Advances from customers Share capital Retained earnings Relevant information are as follows: 1) Dividends of 5% were declared on June 30 and on December 31, 2020. 2) All depreciable assets should be depreciated at 10% per year. 3) Doubtful accounts are estimated to be 5% of year-end accounts receivable. The accounts receivable totaled P200,000 on December 31, 2020. 4) Cash receipts for 2020 are summarized as follows: Advances from customers Cash sales and collections from accounts receivable 70,000 2,960,000 Sales of equipment on December 31, 2020 costing P50,000 on which P30,000 of depreciation had been accumulated 45,000 P3,075,000 5) Cash disbursements for 2020 are summarized as follows: Insurance premium Purchase of equipment on October 1 Cash purchases and payments on accounts payable Salaries 80,000 200,000 1,640,000 390,000 125,000 135,000 Dividends paid Other expenses P2,570,000 6) Additional data on December 31, 2020 are as follows: Inventory Prepaid insurance Advances from customers P245,000 25,000 50,000 30,000 100,000 Accrued salaries Accounts payable Required: a) Income statement for the year ended December 31, 2020. b) Statement of financial position as at December 31, 2020.
Moltres Company provided the following information for the preparation of financial statements for 2020: Balances - January 1, 2020 P 400,000 120,000 230,000 35,000 500,000 2,000,000 700,000 800,000 240,000 170,000 20,000 90,000 2,500,000 365,000 Cash Accounts receivable Inventory Prepaid insurance Land Building Accumulated depreciation - building Equipment Accumulated depreciation – equipment Accounts payable Accrued salaries Advances from customers Share capital Retained earnings Relevant information are as follows: 1) Dividends of 5% were declared on June 30 and on December 31, 2020. 2) All depreciable assets should be depreciated at 10% per year. 3) Doubtful accounts are estimated to be 5% of year-end accounts receivable. The accounts receivable totaled P200,000 on December 31, 2020. 4) Cash receipts for 2020 are summarized as follows: Advances from customers Cash sales and collections from accounts receivable 70,000 2,960,000 Sales of equipment on December 31, 2020 costing P50,000 on which P30,000 of depreciation had been accumulated 45,000 P3,075,000 5) Cash disbursements for 2020 are summarized as follows: Insurance premium Purchase of equipment on October 1 Cash purchases and payments on accounts payable Salaries 80,000 200,000 1,640,000 390,000 125,000 135,000 Dividends paid Other expenses P2,570,000 6) Additional data on December 31, 2020 are as follows: Inventory Prepaid insurance Advances from customers P245,000 25,000 50,000 30,000 100,000 Accrued salaries Accounts payable Required: a) Income statement for the year ended December 31, 2020. b) Statement of financial position as at December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 3
Moltres Company provided the following information for the preparation of financial statements for 2020:
Balances - January 1, 2020
P 400,000
120,000
230,000
35,000
500,000
2,000,000
700,000
800,000
240,000
170,000
20,000
90,000
2,500,000
365,000
Cash
Accounts receivable
Inventory
Prepaid insurance
Land
Building
Accumulated depreciation – building
Equipment
Accumulated depreciation – equipment
Accounts payable
Accrued salaries
Advances from customers
Share capital
Retained earnings
Relevant information are as follows:
1) Dividends of 5% were declared on June 30 and on December 31, 2020.
2) All depreciable assets should be depreciated at 10% per year.
3) Doubtful accounts are estimated to be 5% of year-end accounts receivable. The accounts receivable totaled P200,000
on December 31, 2020.
4) Cash receipts for 2020 are summarized as follows:
Advances from customers
Cash sales and collections from accounts receivable
70,000
2,960,000
Sales of equipment on December 31, 2020 costing
P50,000 on which P30,000 of depreciation
45,000
P3,075,000
had been accumulated
5) Cash disbursements for 2020 are summarized as follows:
Insurance premium
Purchase of equipment on October 1
Cash purchases and payments on accounts payable
Salaries
80,000
200,000
1,640,000
390,000
125,000
135,000
P2,570,000
Dividends paid
Other expenses
6) Additional data on December 31, 2020 are as follows:
Inventory
Prepaid insurance
Advances from customers
P245,000
25,000
50,000
30,000
100,000
Accrued salaries
Accounts payable
Required:
a) Income statement for the year ended December 31, 2020.
b) Statement of financial position as at December 31, 2020.
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