NOTE: PLS ANSWER WITH COMPLETE SOLUTION
REQUIREMENTS: Adjusted balances of the following
18. Accounts payable
19. Notes payable - current, net of discount on notes payable
20. Notes payable - long-term
21. Accrued operating expenses
22. Interest payable
23. Dividends payable
24. Income tax payable
The image below is the correct answers. I just need the complete/ detailed solution
The land and building were acquired by the company only on June 30,2018 for a lump-sum price of P5,000,000. The lump-sum price was allocated properly to land and building. No depreciation has been taken up yet on the building. Depreciation is to be allocated as follows: factory, 60%; selling and administrative, 40%. The building is expected to have a 20 -year life, with no salvage value. On December 29,2018 , Conquest purchased an equipment paying P20,000 cash and issuing a one-year non-interest bearing note for P50,000. The equipment may be purchased for cash of P58,000. Conquest recorded this equipment at P70,000. Freight of P1,200 was incurred on this equipment, which was debited to delivery expense. The other non-current financial assets account is the balance of a loan granted to the company president; the loan bears an interest of 12%. The loan was granted on December 31,2017 and is collectible in installments of P54,000 plus interest on the declining balance every December 31 . The first collection was made on December 31, 2018. The interest collected formed part of Other Income. On August 31,2018 Conquest borrowed P1,500,000 from Metro Financing Company. Interest is payable quarterly at an annual rate of 18%, starting on November 30,2018 . Principal payments of P500,000 are to be made annually starting on August 31, 2019. The interest payment was made on November 30 and was charged to operating expenses. No accrual of interest has been made yet as of December 31 . In June 2018, Conquest Motors Corporation declared and distributed 20% bonus issue on its 20,000 shares previously outstanding. Quoted price of each ordinary share on June 20 was P120. The company recorded the bonus issue as a debit to retained earnings and a credit to ordinary share capital at the fair market value of the shares distributed. In November 2018, the company issued an additional 5,000 shares for P150 per share. The proceeds were credited in full to the Ordinary Share Capital account. On December 15, 2018 Conquest declared P12.00 per share cash dividend, payable on January 15,2019 . The following liabilities were not included in book balances: 1. 2018 bonuses to sales staff, P40,000, which were paid in January 2019 . 2. Audit fee for the year ending December 31,2018,P60,000. 3. A P15,000 bill for magazine advertising recelved on January 10,2019 for an advertisement that appeared in December 2018 issue of Mag-Negosyo. The client has not yet provided for any income tax. Income tax rate is 30%. Disregard any portion of the deferred income tax. Following is the unadjusted trial balance of Conquest Motors Corporation for the \begin{tabular}{|lc} \hline Accounts payable & 508,000 \\ \hline Notes payable - Current & 538,000 \\ \hline Notes payable - Noncurrent & 1,000,000 \\ \hline Accrued Expense & 115,000 \\ \hline Interest Payable & 22,500 \\ \hline Dividens Payable & 348,000 \\ \cline { 2 - 2 } Tax payable & 115,290 \\ \hline \end{tabular} The land and building were acquired by the company only on June 30,2018 for a lump-sum price of P5,000,000. The lump-sum price was allocated properly to land and building. No depreciation has been taken up yet on the building. Depreciation is to be allocated as follows: factory, 60%; selling and administrative, 40%. The building is expected to have a 20 -year life, with no salvage value. On December 29,2018 , Conquest purchased an equipment paying P20,000 cash and issuing a one-year non-interest bearing note for P50,000. The equipment may be purchased for cash of P58,000. Conquest recorded this equipment at P70,000. Freight of P1,200 was incurred on this equipment, which was debited to delivery expense. The other non-current financial assets account is the balance of a loan granted to the company president; the loan bears an interest of 12%. The loan was granted on December 31,2017 and is collectible in installments of P54,000 plus interest on the declining balance every December 31 . The first collection was made on December 31, 2018. The interest collected formed part of Other Income. On August 31,2018 Conquest borrowed P1,500,000 from Metro Financing Company. Interest is payable quarterly at an annual rate of 18%, starting on November 30,2018 . Principal payments of P500,000 are to be made annually starting on August 31, 2019. The interest payment was made on November 30 and was charged to operating expenses. No accrual of interest has been made yet as of December 31 . In June 2018, Conquest Motors Corporation declared and distributed 20% bonus issue on its 20,000 shares previously outstanding. Quoted price of each ordinary share on June 20 was P120. The company recorded the bonus issue as a debit to retained earnings and a credit to ordinary share capital at the fair market value of the shares distributed. In November 2018, the company issued an additional 5,000 shares for P150 per share. The proceeds were credited in full to the Ordinary Share Capital account. On December 15, 2018 Conquest declared P12.00 per share cash dividend, payable on January 15,2019 . The following liabilities were not included in book balances: 1. 2018 bonuses to sales staff, P40,000, which were paid in January 2019 . 2. Audit fee for the year ending December 31,2018,P60,000. 3. A P15,000 bill for magazine advertising recelved on January 10,2019 for an advertisement that appeared in December 2018 issue of Mag-Negosyo. The client has not yet provided for any income tax. Income tax rate is 30%. Disregard any portion of the deferred income tax. Following is the unadjusted trial balance of Conquest Motors Corporation for the \begin{tabular}{|lc} \hline Accounts payable & 508,000 \\ \hline Notes payable - Current & 538,000 \\ \hline Notes payable - Noncurrent & 1,000,000 \\ \hline Accrued Expense & 115,000 \\ \hline Interest Payable & 22,500 \\ \hline Dividens Payable & 348,000 \\ \cline { 2 - 2 } Tax payable & 115,290 \\ \hline \end{tabular}
