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The statements of financial position data of Entity K at the end of 2021 and 2020 follow: Cash Accounts receivable (net) Inventory Prepaid expenses Buildings and equipment Accumulated depreciation - buildings and equipment Land Accounts payable Accrued expenses Notes payable - bank Mortgage payable Share capital, P10 par Retained earnings (deficit) 2021 P 125,000 300,000 350,000 50,000 450,000 (90,000) (40,000) 450,000 200,000 P1,635,000 P1,285,000 P 340,000 60,000 2020 P 175,000 225,000 225,000 125,000 375,000 150,000 1,045,000 40,000 P1,635,000 P 275,000 90,000 200,000 795,000 (75,000) P1,285,000 Increase (Decrease) (P50,000) 75,000 125,000 (75,000) 75,000 50,000 250,000 P350,000 P65,000 (30,000) (200,000) 150,000 250,000 115,000 P350,000

The statements of financial position data of Entity K at the end of 2021 and 2020 follow: Cash Accounts receivable (net) Inventory Prepaid expenses Buildings and equipment Accumulated depreciation - buildings and equipment Land Accounts payable Accrued expenses Notes payable - bank Mortgage payable Share capital, P10 par Retained earnings (deficit) 2021 P 125,000 300,000 350,000 50,000 450,000 (90,000) (40,000) 450,000 200,000 P1,635,000 P1,285,000 P 340,000 60,000 2020 P 175,000 225,000 225,000 125,000 375,000 150,000 1,045,000 40,000 P1,635,000 P 275,000 90,000 200,000 795,000 (75,000) P1,285,000 Increase (Decrease) (P50,000) 75,000 125,000 (75,000) 75,000 50,000 250,000 P350,000 P65,000 (30,000) (200,000) 150,000 250,000 115,000 P350,000

FINANCIAL ACCOUNTING
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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Land was acquired for P250,000 in exchange for ordinary shares, par P250,000, during the year; all equipment purchased was for cash. Equipment costing P25,000 was sold for P10,000; carrying amount of the equipment was P20,000 and the loss was reported as an ordinary item in net income. Cash dividends of P50,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. 1. Net cash provided by operating activities is a. P120,000 b. P130,000 c. P140,000 d. P165,000 2. Net cash provided by (used in) investing activities is a. P 10,000 b. P( 90,000) c. P(100,000) d. P(340,000) 3. Net cash provided by (used in) financing activities is a. P150,000 b. P(100,000) c. P(250,000) d. P350,000
Transcribed Image Text:Land was acquired for P250,000 in exchange for ordinary shares, par P250,000, during the year; all equipment purchased was for cash. Equipment costing P25,000 was sold for P10,000; carrying amount of the equipment was P20,000 and the loss was reported as an ordinary item in net income. Cash dividends of P50,000 were charged to retained earnings and paid during the year; the transfer of net income to retained earnings was the only other entry in the Retained Earnings account. 1. Net cash provided by operating activities is a. P120,000 b. P130,000 c. P140,000 d. P165,000 2. Net cash provided by (used in) investing activities is a. P 10,000 b. P( 90,000) c. P(100,000) d. P(340,000) 3. Net cash provided by (used in) financing activities is a. P150,000 b. P(100,000) c. P(250,000) d. P350,000
MCP 34-11 - Comprehensive The statements of financial position data of Entity K at the end of 2021 and 2020 follow: Cash Accounts receivable (net) Inventory Prepaid expenses Buildings and equipment Accumulated depreciation buildings and equipment Land Accounts payable Accrued expenses Notes payable - bank Mortgage payable Share capital, P10 par Retained earnings (deficit) 2021 P 125,000 300,000 350,000 50,000 450,000 2020 P 175,000 225,000 225,000 125,000 375,000 (90,000) (40,000) 450,000 200,000 P1,635,000 P1,285,000 P 340,000 P 275,000 60,000 90,000 200,000 150,000 1,045,000 40,000 795,000 (75,000) P1,635,000 P1,285,000 Increase (Decrease) (P50,000) 75,000 125,000 (75,000) 75,000 50,000 250,000 P350,000 P65,000 ( 30,000) (200,000) 150,000 250,000 115,000 P350,000
Transcribed Image Text:MCP 34-11 - Comprehensive The statements of financial position data of Entity K at the end of 2021 and 2020 follow: Cash Accounts receivable (net) Inventory Prepaid expenses Buildings and equipment Accumulated depreciation buildings and equipment Land Accounts payable Accrued expenses Notes payable - bank Mortgage payable Share capital, P10 par Retained earnings (deficit) 2021 P 125,000 300,000 350,000 50,000 450,000 2020 P 175,000 225,000 225,000 125,000 375,000 (90,000) (40,000) 450,000 200,000 P1,635,000 P1,285,000 P 340,000 P 275,000 60,000 90,000 200,000 150,000 1,045,000 40,000 795,000 (75,000) P1,635,000 P1,285,000 Increase (Decrease) (P50,000) 75,000 125,000 (75,000) 75,000 50,000 250,000 P350,000 P65,000 ( 30,000) (200,000) 150,000 250,000 115,000 P350,000
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