The following are the changes in the accounts of BT21 Co. during the period: · Accounts receivable- P240,000 increase · Prepaid assets- P600,000 increase · Inventory- P1,500,000 decrease · Notes payable- P800,000 decrease Additional information: During the year, BT21 Co. obtained a bank loan of P2,000,000 and paid interest of P100,000. Interest of P80,000 is accrued on December 31, 2021. Interest payable at the end of 2020 amounted to P120,000. In 2021, a shareholder donated an equipment with historical cost of P1,000,000 and carrying amount of P800,000 to BT21 Co. The fair value of the equipment is P600,000. BT21 declared dividends in 2021 of P160,000. How much is the profit (loss) for the year?

The following are the changes in the accounts of BT21 Co. during the period: · Accounts receivable- P240,000 increase · Prepaid assets- P600,000 increase · Inventory- P1,500,000 decrease · Notes payable- P800,000 decrease Additional information: During the year, BT21 Co. obtained a bank loan of P2,000,000 and paid interest of P100,000. Interest of P80,000 is accrued on December 31, 2021. Interest payable at the end of 2020 amounted to P120,000. In 2021, a shareholder donated an equipment with historical cost of P1,000,000 and carrying amount of P800,000 to BT21 Co. The fair value of the equipment is P600,000. BT21 declared dividends in 2021 of P160,000. How much is the profit (loss) for the year?

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Description: The following are the changes in the accounts of BT21 Co. during the period:· Accounts receivable- P240,000 increase· Prepaid assets- P600,000 increase· Inventory- P1,500,000 decrease· Notes payable- P800,000 decreaseAddit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 4PB: Bristax Corporation recorded $1,385,660 in credit sales for the year, and $732,410 in accounts...

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