Balance Sheet Accounts (December 31) 2019 2020 Cash 283,000 1,000,000 P 150,000 850,000 P Marketable Securities 1,000,000 500,000 500,000 500,000 1,500,000 Accounts Receivable, net 500,000 750,000 500,000 550,000 1,700,000 Inventories Land Building, net Machinery and Equipment, net Goodwill 400,000 100,000 100,000 610,000 40,000 400,000 90,000 Deferred charges Notes Payable, Trade Accounts Payable, Trade Expenses Payable Long-term Notes due 2027 15% Preference Shares, P100 par Ordinary Shares, P10 par Retained Earnings 150,000 790,000 60,000 2,500,000 500,000 1,500,000 250,000 2,250,000 500,000 1,500,000 523,000 2020 Income Statement Accounts Sales 5,250,000 250,000 500,000 750,000 Sales Returns and Allowances Inventory, December 31, 2020 Inventory, December e1, 2019 Purchases Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 2,750,000 400,000 600,000 250,000 Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares 75,000 162,000 Market price per share on ordinary shares 18

Balance Sheet Accounts (December 31) 2019 2020 Cash 283,000 1,000,000 P 150,000 850,000 P Marketable Securities 1,000,000 500,000 500,000 500,000 1,500,000 Accounts Receivable, net 500,000 750,000 500,000 550,000 1,700,000 Inventories Land Building, net Machinery and Equipment, net Goodwill 400,000 100,000 100,000 610,000 40,000 400,000 90,000 Deferred charges Notes Payable, Trade Accounts Payable, Trade Expenses Payable Long-term Notes due 2027 15% Preference Shares, P100 par Ordinary Shares, P10 par Retained Earnings 150,000 790,000 60,000 2,500,000 500,000 1,500,000 250,000 2,250,000 500,000 1,500,000 523,000 2020 Income Statement Accounts Sales 5,250,000 250,000 500,000 750,000 Sales Returns and Allowances Inventory, December 31, 2020 Inventory, December e1, 2019 Purchases Selling Expenses Administrative Expenses (including Depreciation of P250,000) Interest on Long-term Notes 2,750,000 400,000 600,000 250,000 Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares 75,000 162,000 Market price per share on ordinary shares 18

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 103.4C

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