The ledger accounts of the Pab Eba Accessories for the year ended Dec. 31, 2020 are as follows: Office Supplies Expense Pab Eba, Capital Pab Eba, Withdrawals Prepaid Advertising Prepaid Rent Purchases Purchases Discounts Purchases Returns & Allowances Rent Expense Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns & Allowances Transportation In Transportation Out | Travel Expense | Accounts Payable Accounts Receivable |Accumulated Depreciation - Motor Vehicle Accumulated Depreciation - Office Equipment Advertising Expense 424,260 714,000 198,000 71,550 1,305,824 310,000 120,000 252,000 1,414,200 77,781 63,639 Cash 485,000 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Equipment Insurance Expense |Interest Expense Interest Payable Land Merchandise Inventory Mortgage Payable Motor Vehicle Notes Payable due in 2 years Office Equipment Office Supplies 70,000 150,000 570,000 600,000 548,000 2,100,000 1,100,000 750,000 530,000 52,000 2,380,000 95,200 119,000 127,278 43,316 71,060 Additional Information: a. Office supplies consumed during the year amounted to P33,800. b. A two-year advance rent was paid last January 2, 2020. c. Advertising expense in the amount of P70,000 has expired during the year. d. Salaries of P11,500 have accrued as of Dec. 31, 2020. e. The vehicle and equipment have ten-year and twenty-year useful lives, respectively. They both have a 10% residual value. f. Unpaid interest amounted to P150,000. g. The Dec. 31, 2020 ending inventory is P712,400. Use the closing entry method. h. The classification of operating expenses would be 50% administrative and 50% selling unless the expense can be clearly classified. Requirements Prepare the financial statements. (statement of comprehensive income, statement of financial position, and statement of changes in owner's equity)
The ledger accounts of the Pab Eba Accessories for the year ended Dec. 31, 2020 are as follows: Office Supplies Expense Pab Eba, Capital Pab Eba, Withdrawals Prepaid Advertising Prepaid Rent Purchases Purchases Discounts Purchases Returns & Allowances Rent Expense Salaries Expense Salaries Payable Sales Sales Discounts Sales Returns & Allowances Transportation In Transportation Out | Travel Expense | Accounts Payable Accounts Receivable |Accumulated Depreciation - Motor Vehicle Accumulated Depreciation - Office Equipment Advertising Expense 424,260 714,000 198,000 71,550 1,305,824 310,000 120,000 252,000 1,414,200 77,781 63,639 Cash 485,000 Depreciation Expense - Motor Vehicle Depreciation Expense - Office Equipment Insurance Expense |Interest Expense Interest Payable Land Merchandise Inventory Mortgage Payable Motor Vehicle Notes Payable due in 2 years Office Equipment Office Supplies 70,000 150,000 570,000 600,000 548,000 2,100,000 1,100,000 750,000 530,000 52,000 2,380,000 95,200 119,000 127,278 43,316 71,060 Additional Information: a. Office supplies consumed during the year amounted to P33,800. b. A two-year advance rent was paid last January 2, 2020. c. Advertising expense in the amount of P70,000 has expired during the year. d. Salaries of P11,500 have accrued as of Dec. 31, 2020. e. The vehicle and equipment have ten-year and twenty-year useful lives, respectively. They both have a 10% residual value. f. Unpaid interest amounted to P150,000. g. The Dec. 31, 2020 ending inventory is P712,400. Use the closing entry method. h. The classification of operating expenses would be 50% administrative and 50% selling unless the expense can be clearly classified. Requirements Prepare the financial statements. (statement of comprehensive income, statement of financial position, and statement of changes in owner's equity)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The ledger accounts of the Pab Eba Accessories for the year ended Dec. 31, 2020 are as follows:
Accounts Payable
|Accounts Receivable
|Accumulated Depreciation - Motor Vehicle
Accumulated Depreciation - Office Equipment
| Advertising Expense
Cash
Depreciation Expense - Motor Vehicle
Depreciation Expense - Office Equipment
Insurance Expense
Interest Expense
Interest Payable
Land
Merchandise Inventory
|Mortgage Payable
|Motor Vehicle
|Notes Payable due in 2 years
Office Equipment
Office Supplies
Office Supplies Expense
Pab Eba, Capital
Pab Eba, Withdrawals
Prepaid Advertising
Prepaid Rent
Purchases
Purchases Discounts
Purchases Returs & Allowances
Rent Expense
Salaries Expense
Salaries Payable
Sales
Sales Discounts
Sales Returns & Allowances
Transportation In
Transportation Out
Travel Expense
424,260
714,000
198,000
1,305,824
310,000
71,550
120,000
252,000
1,414,200
77,781
485,000
63,639
70,000
150,000
570,000
600,000
548,000
2,100,000
1,100,000
750,000
530,000
52,000
2,380,000
95,200
119,000
127,278
43,316
71,060
Additional Information:
a. Office supplies consumed during the year amounted to P33,800.
b. A two-year advance rent was paid last January 2, 2020.
c. Advertising expense in the amount of P70,000 has expired during the year.
d. Salaries of P11,500 have accrued as of Dec. 31, 2020.
e. The vehicle and equipment have ten-year and twenty-year useful lives, respectively. They both have a
10% residual value.
f. Unpaid interest amounted to P150,000.
g. The Dec. 31, 2020 ending inventory is P712,400. Use the closing entry method.
h. The classification of operating expenses would be 50% administrative and 50% selling unless the
expense can be clearly classified.
Requirements
Prepare the financial statements. (statement of comprehensive income, statement of financial
position, and statement of changes in owner's equity)
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