Problem 1: The following selected information pertains to Brock Company: Cash balance, January 1, 20x1 P130,000 Accounts receivable, January 1, 20x1 190,000 Collections from customers in 20x1 2,100,000 Capital account balance, January 1, 20x1 380,000 Total assets, January 1, 20x1 750,000 Additional cash investment, July 1, 20x1 50,000 Total assets, December 31, 20x1 1,010,000 Cash balance, December 31, 20x1 200,000 Accounts receivable, December 31, 20x1 360,000 Withdrawals made during 20x1 110,000 Total liabilities, December 31, 20x1 410,000 REQUIRED: Net income for the year ended December 31, 20x1 Problem 2: The following are the changes in all the account balances of Kenji Company during the year ended December 31, 20x1, except for retained earnings Increase (Decrease) Cash P592,500 Account receivable, net 1,422,000 Inventory (750,000) Investments (352,500) Accounts payable (382,500) Bonds payable 615,000 Ordinary share capital 450,000 Share premium 30,000 There were no entries in the retained earnings account except for net income and a dividend declaration of P590,000, which was paid in the current year. REQUIRED: Net increase (decrease) in net assets Net income for the current year
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Problem 1: The following selected information pertains to Brock Company:
|
Cash balance, January 1, 20x1 |
P130,000 |
|
Accounts receivable, January 1, 20x1 |
190,000 |
|
Collections from customers in 20x1 |
2,100,000 |
|
Capital account balance, January 1, 20x1 |
380,000 |
|
Total assets, January 1, 20x1 |
750,000 |
|
Additional cash investment, July 1, 20x1 |
50,000 |
|
Total assets, December 31, 20x1 |
1,010,000 |
|
Cash balance, December 31, 20x1 |
200,000 |
|
Accounts receivable, December 31, 20x1 |
360,000 |
|
Withdrawals made during 20x1 |
110,000 |
|
Total liabilities, December 31, 20x1 |
410,000 |
REQUIRED:
- Net income for the year ended December 31, 20x1
Problem 2: The following are the changes in all the account balances of Kenji Company during the year ended December 31, 20x1, except for
|
|
Increase (Decrease) |
|
Cash |
P592,500 |
|
Account receivable, net |
1,422,000 |
|
Inventory |
(750,000) |
|
Investments |
(352,500) |
|
Accounts payable |
(382,500) |
|
Bonds payable |
615,000 |
|
Ordinary share capital |
450,000 |
|
Share premium |
30,000 |
There were no entries in the retained earnings account except for net income and a dividend declaration of P590,000, which was paid in the current year.
REQUIRED:
- Net increase (decrease) in net assets
- Net income for the current year
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