Lewis Company was formed on January 1, 20X6, Selected balances from the historical cost balance sheet at December 31, 20X7, were as follows: Land (purchased in (20X6)…………………… P120,000 Investment in nonconvertible bonds (purchased in 20X6, and expected to be held to maturity)…………60,000 Long-term debt……….80,000 The average cpnsumer price index was 100 for 20X6, and 110 for 20X7. In a constant peso balance sheet (adjusted for changing prices) at December 31, 20X7, these selected account balances should be shown at Land Investment Long-term debt 120,000 60,000 88,000 120,000 66,000 88,000 132,000 60,000 80,000 132,000 66,000 80,000

Lewis Company was formed on January 1, 20X6, Selected balances from the historical cost balance sheet at December 31, 20X7, were as follows: Land (purchased in (20X6)…………………… P120,000 Investment in nonconvertible bonds (purchased in 20X6, and expected to be held to maturity)…………60,000 Long-term debt……….80,000 The average cpnsumer price index was 100 for 20X6, and 110 for 20X7. In a constant peso balance sheet (adjusted for changing prices) at December 31, 20X7, these selected account balances should be shown at Land Investment Long-term debt 120,000 60,000 88,000 120,000 66,000 88,000 132,000 60,000 80,000 132,000 66,000 80,000

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter12: Capital Structure

Section: Chapter Questions

Problem 1PROB

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