Zoo Company began operations on January 1, 2024 with a P1,500,000 from the issuance of shares and borrowed funds of P500,000. P300,000 worth of equipment was acquired out of the initial investment. At the end of the accounting year, the company reported a net income of P400,000, and Zoo declared a P100,000 cash dividend on December 19, 2024. No additional transactions affected the owner’s equity in2024. On December 31, 2024, liabilities of the company had increased to P700,000. InZoo’s December 31, 2024 statement of financial position, how much should be reported as its total assets?
Zoo Company began operations on January 1, 2024 with a P1,500,000 from the issuance of shares and borrowed funds of P500,000. P300,000 worth of equipment was acquired out of the initial investment. At the end of the accounting year, the company reported a net income of P400,000, and Zoo declared a P100,000 cash dividend on December 19, 2024. No additional transactions affected the owner’s equity in2024. On December 31, 2024, liabilities of the company had increased to P700,000. InZoo’s December 31, 2024 statement of financial position, how much should be reported as its total assets?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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Zoo Company began operations on January 1, 2024 with a P1,500,000 from the issuance of shares and borrowed funds of P500,000. P300,000 worth of equipment was acquired out of the initial investment. At the end of the accounting year, the company reported a net income of P400,000, and Zoo declared a P100,000 cash dividend on December 19, 2024. No additional transactions affected the owner’s equity in2024. On December 31, 2024, liabilities of the company had increased to P700,000. InZoo’s December 31, 2024
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