Riftwalker Company was incorporated on January 1, 2015 with proceeds from issuance of P7,500,000 in share capital and borrowed funds of P1,100,000. During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000. On December 15, 2015 the entity declared a P300,000 dividends, payable to sharehalders on January 15, 2016. The liabilities increased to P2,000,000 by December 31, 2015. On December 31, 2015, what amount should be reported as total assets? A. 12,100,000 B. 11,300,000 C. 11,000,000 D. 10,100,000
Riftwalker Company was incorporated on January 1, 2015 with proceeds from issuance of P7,500,000 in share capital and borrowed funds of P1,100,000. During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000. On December 15, 2015 the entity declared a P300,000 dividends, payable to sharehalders on January 15, 2016. The liabilities increased to P2,000,000 by December 31, 2015. On December 31, 2015, what amount should be reported as total assets? A. 12,100,000 B. 11,300,000 C. 11,000,000 D. 10,100,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Riftwalker Company was incorporated on January 1, 2015 with proceeds from issuance of P7,500,000 in share capital and borrowed funds of P1,100,000. During the first year, revenue from sales and consulting amounted to P8,200,000, and operating costs and expenses totaled P6,400,000. On December 15, 2015 the entity declared a P300,000 dividends, payable to sharehalders on January 15, 2016. The liabilities increased to P2,000,000 by December 31, 2015. On December 31, 2015, what amount should be reported as total assets?
A. 12,100,000
B. 11,300,000
C. 11,000,000
D. 10,100,000
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