Homework Help is Here – Start Your Trial Now!
Business
Accounting
Net income *?

Net income *?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
  1. Net income *?
Assessment Proper:. Current Cost Accounting The questions in this section are based on the following data: Problem 2: ABC Company was formed on January 1, 2020. The entity reported the following financial statements pertaining to the first year of operations: Income Statement Sales Cost of goods sold Inventory - January 1 Purchases Goods available for sale Inventory - December 31 Gross profit Operating expenses Expenses excluding depreciation Depreciation Income before income tax Less: Income tax expense P5,000,000 P1,000,000 3.100.000 P4,100,000 ( 900,000) 3,200.000 P1,800,000 P 700,000 100.000 800.000 P1,000,000 350.000 P 650.000 Net Income Statement of Financial Position Assets Cash Accounts receivable Inventory Land Equipment (Life - 10 years) Accumulated depreciation Total assets P 500,000 600,000 900,000 800,000 P1,000,000 100.000 900.000 P3,700.000 Liabilities and Shareholders' Equity Accounts payable Notes payable Income tax payable P 500,000 400,000 350.000 P1,250,000 Share capital Retained Earnings Net Income P2,000,000 P 650,000 200,000) Dividends 450.000 2.450.000 Total liabilities and shareholders' equity P3,700.000 Current cost information on December 31, 2020: Cost of goods sold at average current cost Inventory Land Equipment P3,500,000 1,000,000 1,500,000 1,600,000 Required: In a restated set of financial statements prepared in accordance with the current cost accunting how much would anpear ae
Transcribed Image Text:Assessment Proper:. Current Cost Accounting The questions in this section are based on the following data: Problem 2: ABC Company was formed on January 1, 2020. The entity reported the following financial statements pertaining to the first year of operations: Income Statement Sales Cost of goods sold Inventory - January 1 Purchases Goods available for sale Inventory - December 31 Gross profit Operating expenses Expenses excluding depreciation Depreciation Income before income tax Less: Income tax expense P5,000,000 P1,000,000 3.100.000 P4,100,000 ( 900,000) 3,200.000 P1,800,000 P 700,000 100.000 800.000 P1,000,000 350.000 P 650.000 Net Income Statement of Financial Position Assets Cash Accounts receivable Inventory Land Equipment (Life - 10 years) Accumulated depreciation Total assets P 500,000 600,000 900,000 800,000 P1,000,000 100.000 900.000 P3,700.000 Liabilities and Shareholders' Equity Accounts payable Notes payable Income tax payable P 500,000 400,000 350.000 P1,250,000 Share capital Retained Earnings Net Income P2,000,000 P 650,000 200,000) Dividends 450.000 2.450.000 Total liabilities and shareholders' equity P3,700.000 Current cost information on December 31, 2020: Cost of goods sold at average current cost Inventory Land Equipment P3,500,000 1,000,000 1,500,000 1,600,000 Required: In a restated set of financial statements prepared in accordance with the current cost accunting how much would anpear ae
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Financial Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS