,500,000 of

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter15: Contributed Capital
Section: Chapter Questions
Problem 2MC: Cary Corporation has 50,000 shares of 10 par common stock authorized. The following transactions...
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Sincere Corporation financial statements for the year ended December 31, 2021 are authorized for issue on March 30, 2022. On January 28, 2022, a fire destroyed partially the production site of the company resulting to damages of P2,000,000, only P1,500,000 of which is covered by insurance. On March 10, 2022, Peaceful issued additional 100,000 shares at P10 par value. On March 15, 2022, a customer owing P400,000 to the company filed for bankruptcy. The allowance of doubtful accounts amounting to P200,000 as of December 31 included P50,000 pertaining to the said customer. What amount should be adjusted on December 31, 2021 in relation to these events?

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