The audit of Anika Company for the year ended December 31, 2018 was completed on March 1, 2019. The financial statements were signed by the managing director on March 15, 2019 and approved by the shareholders on March 31, 2019. The next events have occurred: • On January 15, 2019, a customer owing P2,160,000 to Aimee filed for bankruptcy. The financial statements include an allowance for doubtful; accounts pertaining to this customer only of P240,000. • Aimee company’s issued share capital comprised 100,000 ordinary shares with P100 par value. The entity issued additional 25,000 shares on March 1, 2019 at par value. • Specialized equipment costing P1,260,000 purchased on September 1, 2018 was destroyed by fire on December 15, 2018. Aimee company has booked a receivable of P960,000 from the insurance entity. • After the insurance entity completed its investigation on February 1, 2019, it was discovered that the fire took place due to negligence of the machine operator. As a result, the insurer’s liability was zero on this claim. What should be reported as total amount of “adjusting events” on December 31, 2018? PLS provide solution and explanation for the answer above Philippines Accounting standard
#21
The audit of Anika Company for the year ended December 31, 2018 was completed on March 1, 2019. The financial statements
were signed by the managing director on March 15, 2019 and approved by the shareholders on March 31, 2019. The next
events have occurred:
• On January 15, 2019, a customer owing P2,160,000 to Aimee filed for bankruptcy. The financial statements include
an allowance for doubtful; accounts pertaining to this customer only of P240,000.
• Aimee company’s issued share capital comprised 100,000 ordinary shares with P100 par value. The entity issued
additional 25,000 shares on March 1, 2019 at par value.
• Specialized equipment costing P1,260,000 purchased on September 1, 2018 was destroyed by fire on December 15,
2018. Aimee company has booked a receivable of P960,000 from the insurance entity.
• After the insurance entity completed its investigation on February 1, 2019, it was discovered that the fire took place
due to negligence of the machine operator. As a result, the insurer’s liability was zero on this claim.
What should be reported as total amount of “adjusting events” on December 31, 2018?
PLS provide solution and explanation for the answer above
Philippines Accounting standard
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