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  • Balucan InAcc 3 Week2 Part 2

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    Luigi Enderez Balucan
    96 views2 pages
    The document provides information about Edson Company's assets, liabilities, equity, common stock, and retained earnings for the beginning and end of the year. It also lists dividends declared during the year. Using this financial information, the net income for Edson Company for the year is calculated to be P24,000. The document also presents three company's financial information with blanks to be filled in, including sales, inventory amounts, purchases, cost of goods sold, gross profit, and operating expenses.

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    Balucan InAcc 3 week2 part 2

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    The document provides information about Edson Company's assets, liabilities, equity, common stock, and retained earnings for the beginning and end of the year. It also lists dividends declared during the year. Using this financial information, the net income for Edson Company for the year is calculated to be P24,000. The document also presents three company's financial information with blanks to be filled in, including sales, inventory amounts, purchases, cost of goods sold, gross profit, and operating expenses.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    96 views2 pages

    Balucan InAcc 3 Week2 Part 2

    Uploaded by

    Luigi Enderez Balucan
    The document provides information about Edson Company's assets, liabilities, equity, common stock, and retained earnings for the beginning and end of the year. It also lists dividends declared during the year. Using this financial information, the net income for Edson Company for the year is calculated to be P24,000. The document also presents three company's financial information with blanks to be filled in, including sales, inventory amounts, purchases, cost of goods sold, gross profit, and operating expenses.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    BALUCAN, LUIGI E.

    PROBLEM 1

    MODULE 3

    Problem 1
    Presented below is certain information pertaining to Edson Company.
    Assets, January 1 P240,000
    Assets, December 31 230,000
    Liabilities, January 1 150,000
    Common stock, December 31 80,000
    Retained earnings, December 31 31,000
    Common stock sold during the year 10,000
    Dividends declared during the year 13,000
    Compute the net income for the year.

    SOLUTION:

    Assets, January 1 P240,000 Common stock, December 31 P80,000


    Liabilities, January 1 (150,000) Retained earnings, December 31 31,000
    Equity, January 1 P90,000 Equity, December 31 P111,000

    Equity, January 1 P90,000


    Equity, December 31 P111,000
    Increase P21,000
    Dividends declared during the year 13,000
    Common stock sold during the year (10,000 )
    NET INCOME P24,000

    PROBLEM 2

    Fill in the appropriate blanks for each of the independent situations below.

    Company A Company B Company C

    Sales (a) P261,000 P343,400 P540,000

    Beginning inventory 52,600 (d) 97,800 90,000

    Net purchases 175,300 255,600 (g) 380,000

    Ending inventory 52,200 108,000 63,000

    Cost of goods sold (b)175,700 (e) 245,400 407,000

    Gross profit 85,300 98,000 (h) 133,000

    Operating expenses (c) 79,300 50,000 48,000

    Income before taxes 6,000 (f) 48,000 (i) 85,000


    Farr Company
    Statement of Financial Performance
    For the year ended December 31, 2020

    Sales ₱ 1,400,000.00
    Less: Cost of Good Sold -₱ 780,000.00
    Gross Profit ₱ 620,000.00
    Less: Selling and Administrative Expense -₱ 240,000.00
    Operating Income ₱ 380,000.00
    Other Revenue ₱ 120,000.00
    Less: Other Expenses -₱ 120,000.00
    Income Before Tax ₱ 400,000.00
    Less: Income Tax -₱ 120,000.00
    Income before extraordinary item ₱ 280,000.00
    Less: Extraordinary loss, Net of tax -₱ 203,000.00
    Net Income ₱ 77,000.00

    Per share of common stock


    ₱
    Income before extraordinary item (280K/80K) 3.50
    -₱
    Less: Extraordinary item, net of tax (203K/80K) 2.54

    ₱
    Net income 0.96

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