The following are the transactions during the year: [a] Cost of equipment acquired on January 1 for cash, 5 year useful life [b] Issued on April 1, 12% promissory note for purchase of merchandise [c] Sales on account 150,000 960,000 1,500,000 600,000 Cost of sales [d] July 1, paid half of the notes payable plus accrued interest The remainder plus interest is payable next year [e] Employee benefit expense Actuarial gains Actuarial loss 300,000 12,000 20,000 (25,000) 50,000 90,000 0 Purchased trading securities (these shares are the entity's own shares) (g] Declared dividends, payable next year (h] Payment of lease (inclusive of Php10,000 interest) Collections from customers, net of 2% cash discount Depreciation of equipment Amortization of right of use asset [k] Sales price of half of the trading securities sold 882,000 30,000 80,000 35,000
The following are the transactions during the year: [a] Cost of equipment acquired on January 1 for cash, 5 year useful life [b] Issued on April 1, 12% promissory note for purchase of merchandise [c] Sales on account 150,000 960,000 1,500,000 600,000 Cost of sales [d] July 1, paid half of the notes payable plus accrued interest The remainder plus interest is payable next year [e] Employee benefit expense Actuarial gains Actuarial loss 300,000 12,000 20,000 (25,000) 50,000 90,000 0 Purchased trading securities (these shares are the entity's own shares) (g] Declared dividends, payable next year (h] Payment of lease (inclusive of Php10,000 interest) Collections from customers, net of 2% cash discount Depreciation of equipment Amortization of right of use asset [k] Sales price of half of the trading securities sold 882,000 30,000 80,000 35,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Prepare
![Social Media Enterprises
Statement of Financial Position
January 1, 2021
500,000
800,000
(24,000)
200,000
Cash
Accounts Receivable
Allowance for bad debts
Inventory
Prepaid insurance
Right of Use
Equipment
Total assets
40,000
800,000
300,000
2,616,000
Accounts payable
Accrued expenses
Income tax payable
120,000
15,000
150,000
880,000
320,000
1,500,000
200,000
Lease liabilities
Defined benefit obligation
Share capital
Share premium
Retained earnings
Treasury share
Total liabilities and shareholders' equity
(519,000)
(50,000)
2,616,000
The following are the transactions during the year:
[a] Cost of equipment acquired on January 1 for cash, 5 year useful life
[b) Issued on April 1, 12% promissory note for purchase of merchandise
[c] Sales on account
150,000
960,000
1,500,000
600,000
Cost of sales
[(d) July 1, paid half of the notes payable plus accrued interest
The remainder plus interest is payable next year
[e] Employee benefit expense
Actuarial gains
300,000
12,000
Actuarial loss
20,000
Purchased trading securities (these shares are the entity's own shares)
[g]
(25,000)
50,000
Declared dividends, payable next year
[h] Payment of lease (inclusive of Php10,000 interest)
Collections from customers, net of 2% cash discount
Depreciation of equipment
Amortization of right of use asset
90,000
882,000
30,000
80,000
[k] Sales price of half of the trading securities sold
35,000
Current income tax expense, payable next year
Deferred income tax expense (benefit)
Deferred income tax on remeasurement loss of defined benefit obligation
Payment of expenses
Accrued expenses, Dec. 31
Bad debt expense
Accounts written off
70,000
(22,000)
1,500
320,000
35,000
12,000
30,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a382c13-40d3-4029-a878-4bb56aa81eb7%2Fc815b837-bba3-40dc-97b7-d62705f2fd88%2Fc79ohyr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Social Media Enterprises
Statement of Financial Position
January 1, 2021
500,000
800,000
(24,000)
200,000
Cash
Accounts Receivable
Allowance for bad debts
Inventory
Prepaid insurance
Right of Use
Equipment
Total assets
40,000
800,000
300,000
2,616,000
Accounts payable
Accrued expenses
Income tax payable
120,000
15,000
150,000
880,000
320,000
1,500,000
200,000
Lease liabilities
Defined benefit obligation
Share capital
Share premium
Retained earnings
Treasury share
Total liabilities and shareholders' equity
(519,000)
(50,000)
2,616,000
The following are the transactions during the year:
[a] Cost of equipment acquired on January 1 for cash, 5 year useful life
[b) Issued on April 1, 12% promissory note for purchase of merchandise
[c] Sales on account
150,000
960,000
1,500,000
600,000
Cost of sales
[(d) July 1, paid half of the notes payable plus accrued interest
The remainder plus interest is payable next year
[e] Employee benefit expense
Actuarial gains
300,000
12,000
Actuarial loss
20,000
Purchased trading securities (these shares are the entity's own shares)
[g]
(25,000)
50,000
Declared dividends, payable next year
[h] Payment of lease (inclusive of Php10,000 interest)
Collections from customers, net of 2% cash discount
Depreciation of equipment
Amortization of right of use asset
90,000
882,000
30,000
80,000
[k] Sales price of half of the trading securities sold
35,000
Current income tax expense, payable next year
Deferred income tax expense (benefit)
Deferred income tax on remeasurement loss of defined benefit obligation
Payment of expenses
Accrued expenses, Dec. 31
Bad debt expense
Accounts written off
70,000
(22,000)
1,500
320,000
35,000
12,000
30,000
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