Summa Company revealed the following account balances on December 31, 2020: Accounts payable 1,000,000 Accounts receivable, net of allowance for doubtful accounts P50,000 600,000 Accrued taxes 50,000 Accrued interest receivable 30,000 5,000,000 Authorized share capital, 50,000 shares, P100 par Building, net of accumulated depreciation of P2,500,000 Cash on hand 3,000,000 50,000 Cash in bank 650,000 Bond sinking fund 2,000,000 Furniture and equipment, net of accumulated depreciation of P900,000 1,500,000 Inventory 1,200,000 Investment property Land 700,000 1,000,000 Deferred tax liability 650,000 Bonds payable due June 30, 2021 gronds 2,000,000 Notes payable 850,000 Notes receivable 200,000 Patent 370,000 Other accrued liabilities 150,000 Prepaid expenses 100,000 Share premium 300,000 Retained earnings appropriated for contingencies 200,000 Retained earnings 2,700,000 Share subscription receivable 500,000 Subscribed share capital, 2,000 shares Unissued share capital 1,000,000 2,000,000 Required: Prepare a statement of financial position, presented and classified according to generally accepted accounting principles with appropriate notes.

Summa Company revealed the following account balances on December 31, 2020: Accounts payable 1,000,000 Accounts receivable, net of allowance for doubtful accounts P50,000 600,000 Accrued taxes 50,000 Accrued interest receivable 30,000 5,000,000 Authorized share capital, 50,000 shares, P100 par Building, net of accumulated depreciation of P2,500,000 Cash on hand 3,000,000 50,000 Cash in bank 650,000 Bond sinking fund 2,000,000 Furniture and equipment, net of accumulated depreciation of P900,000 1,500,000 Inventory 1,200,000 Investment property Land 700,000 1,000,000 Deferred tax liability 650,000 Bonds payable due June 30, 2021 gronds 2,000,000 Notes payable 850,000 Notes receivable 200,000 Patent 370,000 Other accrued liabilities 150,000 Prepaid expenses 100,000 Share premium 300,000 Retained earnings appropriated for contingencies 200,000 Retained earnings 2,700,000 Share subscription receivable 500,000 Subscribed share capital, 2,000 shares Unissued share capital 1,000,000 2,000,000 Required: Prepare a statement of financial position, presented and classified according to generally accepted accounting principles with appropriate notes.

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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