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Rica Company was establish on January 1, 2019, with P5,000,000 from the owner and borrowed funds of P750,000. During the first year of operations, net income was P1,000,000. On December 15, Rica withdraw P200,000 . No additional activities affected owners’ equity in 2019. At December 31, 2019, Rica’s liabilities had increased to P900,000. In Rica’s December 31, 2019 balance sheet, total assets should be reported at Choices: P7,450,000 P6,900,000 P5,550,000

Rica Company was establish on January 1, 2019, with P5,000,000 from the owner and borrowed funds of P750,000. During the first year of operations, net income was P1,000,000. On December 15, Rica withdraw P200,000 . No additional activities affected owners’ equity in 2019. At December 31, 2019, Rica’s liabilities had increased to P900,000. In Rica’s December 31, 2019 balance sheet, total assets should be reported at Choices: P7,450,000 P6,900,000 P5,550,000

FINANCIAL ACCOUNTING
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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Rica Company was establish on January 1, 2019, with P5,000,000 from the owner and borrowed funds of P750,000. During the first year of operations, net income was P1,000,000. On December 15, Rica withdraw P200,000 . No additional activities affected owners’ equity in 2019. At December 31, 2019, Rica’s liabilities had increased to P900,000. In Rica’s December 31, 2019 balance sheet, total assets should be reported at

Choices:

P7,450,000

P6,900,000

P5,550,000

P6,700,000

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