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Exercise no. 6 Balance Sheet and Income Statement Preparation The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 Cash P 150,000 850,000 500,000 750,000 500,000 550,000 P 283,000 1,000,000 1,000,000 500,000 500,000 500,000 Marketable Securities Accounts Receivable, net Inventories Land Building, net Machinery and Equipment, net 1,700,000 1,500,000 Goodwill Deferred charges Notes Payable, Trade Accounts Payable, Trade Expenses Payable 400,000 100,000 100,000 610,000 400,000 90,000 150,000 790,000 40,000 60,000 Long-term Notes due 2027 2,500,000 2,250,000 15% Preference Shares, P100 par Ordinary Shares, P10 par 500,000 1,500,000 500,000 1,500,000 Retained Earnings 250,000 523,000 2020 Income Statement Accounts Sales Sales Returns and Allowances 5,250,000 250,000 Inventory, December 31, 2020 500,000 Inventory, December e1, 2019 750,000 Purchases 2,750,000 400,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) 600,000 250,000 Interest on Long-term Notes Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.

Exercise no. 6 Balance Sheet and Income Statement Preparation The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 Cash P 150,000 850,000 500,000 750,000 500,000 550,000 P 283,000 1,000,000 1,000,000 500,000 500,000 500,000 Marketable Securities Accounts Receivable, net Inventories Land Building, net Machinery and Equipment, net 1,700,000 1,500,000 Goodwill Deferred charges Notes Payable, Trade Accounts Payable, Trade Expenses Payable 400,000 100,000 100,000 610,000 400,000 90,000 150,000 790,000 40,000 60,000 Long-term Notes due 2027 2,500,000 2,250,000 15% Preference Shares, P100 par Ordinary Shares, P10 par 500,000 1,500,000 500,000 1,500,000 Retained Earnings 250,000 523,000 2020 Income Statement Accounts Sales Sales Returns and Allowances 5,250,000 250,000 Inventory, December 31, 2020 500,000 Inventory, December e1, 2019 750,000 Purchases 2,750,000 400,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) 600,000 250,000 Interest on Long-term Notes Income Taxes, 32% Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.

Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter3: The Basics Of Record Keeping And Financial Statement Preparation: Income Statement
Section: Chapter Questions
Problem 20P
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Exercise no. 6 Balance Sheet and Income Statement Preparation The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 150,000 850,000 500,000 750,000 500,000 550,000 283,000 1,000,000 1,000,000 500,000 500,000 500,000 Cash P Marketable Securities Accounts Receivable, net Inventories Land Building, net Machinery and Equipment, net 1,700,000 1,500,000 Goodwill Deferred charges Notes Payable, Trade Accounts Pay Expenses Payable 400,000 100,000 100,000 610,000 40,000 400,000 90,000 150,000 790,000 Trade 60,000 Long-term Notes due 2027 2,500,000 2,250,000 15% Preference Shares, P100 par Ordinary Shares, P10 par 500,000 1,500,000 500,000 1,500,000 Retained Earnings 250,000 523,000 2020 Income Statement Accounts Sales 5,250,000 Sales Returns and Allowances 250,000 Inventory, December 31, 2020 500,000 Inventory, December e1, 2019 750,000 Purchases 2,750,000 400,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) 600,000 Interest on Long-term Notes Income Taxes, 32% 250,000 Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.
Transcribed Image Text:Exercise no. 6 Balance Sheet and Income Statement Preparation The following are the balance sheet and income statement data of ABC Company: Balance Sheet Accounts (December 31) 2019 2020 150,000 850,000 500,000 750,000 500,000 550,000 283,000 1,000,000 1,000,000 500,000 500,000 500,000 Cash P Marketable Securities Accounts Receivable, net Inventories Land Building, net Machinery and Equipment, net 1,700,000 1,500,000 Goodwill Deferred charges Notes Payable, Trade Accounts Pay Expenses Payable 400,000 100,000 100,000 610,000 40,000 400,000 90,000 150,000 790,000 Trade 60,000 Long-term Notes due 2027 2,500,000 2,250,000 15% Preference Shares, P100 par Ordinary Shares, P10 par 500,000 1,500,000 500,000 1,500,000 Retained Earnings 250,000 523,000 2020 Income Statement Accounts Sales 5,250,000 Sales Returns and Allowances 250,000 Inventory, December 31, 2020 500,000 Inventory, December e1, 2019 750,000 Purchases 2,750,000 400,000 Selling Expenses Administrative Expenses (including Depreciation of P250,000) 600,000 Interest on Long-term Notes Income Taxes, 32% 250,000 Additional Information Dividends paid on preference shares Dividends paid on ordinary shares Market price per share on ordinary shares 75,000 162,000 18 Requirements: 1. Prepare comparative balance sheets for 2019 and 2020. 2. Prepare income statement for the year ended December 31, 2020.
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