Rica Company was establish on January 1, 2019, with P5,000,000 from the owner and borrowed funds of P750,000. During the first year of operations, net income was P1,000,000. On December 15, Rica withdraw P200,000 . No additional activities affected owners’ equity in 2019. At December 31, 2019, Rica’s liabilities had increased to P900,000. In Rica’s December 31, 2019 balance sheet, total assets should be reported at Choices: P7,450,000 P6,900,000 P5,550,000

Rica Company was establish on January 1, 2019, with P5,000,000 from the owner and borrowed funds of P750,000. During the first year of operations, net income was P1,000,000. On December 15, Rica withdraw P200,000 . No additional activities affected owners’ equity in 2019. At December 31, 2019, Rica’s liabilities had increased to P900,000. In Rica’s December 31, 2019 balance sheet, total assets should be reported at Choices: P7,450,000 P6,900,000 P5,550,000

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 49P

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Rica Company was establish on January 1, 2019, with P5,000,000 from the owner and borrowed funds of P750,000. During the first year of operations, net income was P1,000,000. On December 15, Rica withdraw P200,000. No additional activities affected owners' equity in 2019. At December 31, 2019, Rica's liabilities had increased to P900,000. In Rica's December 31, 2019 balance sheet, total assets should be reported at
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