The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 Cash 150,000 283,000 Marketable Securities 850,000 1,000,000 Accounts Receivable, net 500,000 1,000,000 Inventories 750,000 500,000 Land 500,000 500,000 Building, net Machinery and Equipment, net 550,000 500,000 1,700,000 1,500,000 400,000 Goodwill 400,000 Deferred charges 100,000 90,000 Notes Payable, Trade 100,000 610,000 150,000 Accounts Payable, Trade 790,000 Expenses Payable Long-term Notes due 2027 15% Preference Shares, P100 par Ordinary Shares, P10 par Retained Earnings 40,000 60,000 2,500,000 2,250,000 500,000 500,000 1,500,000 250,000 1,500,000 523,000 2020 Income Statement Accounts Sales 5,250,000 250,000 500,000 Sales Returns and Allowances Inventory, December 31, 2020 Inventory, December e1, 2019 Purchases 750,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 2,750,000 400,000 600,000 250,000 Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.
The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 Cash 150,000 283,000 Marketable Securities 850,000 1,000,000 Accounts Receivable, net 500,000 1,000,000 Inventories 750,000 500,000 Land 500,000 500,000 Building, net Machinery and Equipment, net 550,000 500,000 1,700,000 1,500,000 400,000 Goodwill 400,000 Deferred charges 100,000 90,000 Notes Payable, Trade 100,000 610,000 150,000 Accounts Payable, Trade 790,000 Expenses Payable Long-term Notes due 2027 15% Preference Shares, P100 par Ordinary Shares, P10 par Retained Earnings 40,000 60,000 2,500,000 2,250,000 500,000 500,000 1,500,000 250,000 1,500,000 523,000 2020 Income Statement Accounts Sales 5,250,000 250,000 500,000 Sales Returns and Allowances Inventory, December 31, 2020 Inventory, December e1, 2019 Purchases 750,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 2,750,000 400,000 600,000 250,000 Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
Transcribed Image Text:The following are the balance sheet and income statement data of ABC Company:
Balance Sheet Accounts (December 31)
2019
2020
Cash
150,000
283,000
Marketable Securities
850,000
1,000,000
Accounts Receivable, net
500,000
1,000,000
Inventories
750,000
500,000
Land
500,000
500,000
Building, net
Machinery and Equipment, net
550,000
500,000
1,700,000
1,500,000
Goodwill
400,000
400,000
Deferred charges
Notes Payable, Trade
Accounts Payable, Trade
Expenses Payable
Long-term Notes due 2027
15% Preference Shares, P100 par
100,000
90,000
100,000
150,000
610,000
790,000
60,000
2,250,000
40,000
2,500,000
500,000
500,000
1,500,000
Ordinary Shares, P10 par
Retained Earnings
1,500,000
250,000
523,000
2020 Income Statement Accounts
Sales
5,250,000
Sales Returns and Allowances
250,000
Inventory, December 31, 2020
Inventory, December e1, 2019
Purchases
500,000
750,000
2,750,000
Selling Expenses
Administrative Expenses (including Depreciation of P250,000)
Interest on Long-term Notes
400,000
600,000
250,000
Income Taxes, 32%
Additional Information
Dividends paid on preference shares
Dividends paid on ordinary shares
Market price per share on ordinary shares
75,000
162,000
18
Requirements:
1. Prepare comparative balance sheets for 2019 and 2020.
2. Prepare income statement for the year ended December 31, 2020.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Knowledge Booster
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education