The following is a statement of earned surplus prepared by thecompany for 2021:Balance, 1/1669.1Additions: orldwisecriouChange in estimate of 2021bo amortization expenseGain on sale of landInterest incomeProfit for 2021TotalNAbseDeductions:Increased depreciation due to changein estimated life played at tanDividends declared and paid tga olLoss on sale of equipmentLoss from major casualtyd betetBalance, 12/31P 2,80018,3504,50013,680a. P7,260 lossb. P5,060 lossC. P4,940 profitd. P2,740 profitP 85,949P 5,00010,0003,86027,73039,330125,27946,590P 78,689The adjusted profit or loss that should be reported in the company'sincome statement for the year ended Dec. 31, 2021 is2995100225 16 31010-2012

Net income, also known as net profit, is the amount of revenue left over after deducting all…

The following is a statement of earned surplus prepared company for 2021: Balance, 1/1 Additions: Change in estimate of 2021 amortization expense Gain on sale of land Interest income Profit for 2021 P 85, P 2,800 18,350 4,500 bar13,680p 39

The following is a statement of earned surplus prepared company for 2021: Balance, 1/1 Additions: Change in estimate of 2021 amortization expense Gain on sale of land Interest income Profit for 2021 P 85, P 2,800 18,350 4,500 bar13,680p 39

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

The following is a statement of earned surplus prepared by the
company for 2021:
Balance, 1/1669.1
Additions: orldwisecriou
Change in estimate of 2021
bo amortization expense
Gain on sale of land
Interest income
Profit for 2021
Total
N
Abse
Deductions:
Increased depreciation due to change
in estimated life played at tan
Dividends declared and paid tga ol
Loss on sale of equipment
Loss from major casualtyd betet
Balance, 12/31
P 2,800
18,350
4,500
13,680
a. P7,260 loss
b. P5,060 loss
C. P4,940 profit
d. P2,740 profit
P 85,949
P 5,000
10,000
3,860
27,730
39,330
125,279
46,590
P 78,689
The adjusted profit or loss that should be reported in the company's
income statement for the year ended Dec. 31, 2021 is
2995100225 16 31010-2012

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Subject;
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What is the Asset Turnover Ratio in 2020?