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please help... Problem 4. FRONTLINERS Co. was incorporated on January 1, 2019. The following were the transactions during the year: Total consideration from share issuances
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Problem 4. FRONTLINERS Co. was incorporated on January 1, 2019. The following were the transactions during the year: Total consideration from share issuances amounted to $2,000,000. A land and building were acquired through a lump sum payment of P400,000. A mortgage amounting to P100,000 was assumed on the land and building. Total payments of P80.000 were made during the year on the mortgage assumed on the land and building. The payments are inclusive of interest amounting to P10,000. Additional capital of P200,000 was obtained through bank loans. None of the bank loans were paid during the year. Half of the bank loans required a secondary mortgage on the land and building. There is no accrued interest as of year-end. Dividends declared during the year but remained unpaid amounted to P60,000. No other transactions during the year affected liabilities. Relained earnings as of December 31, 2019 is P120,00D. a. How much is the profit for the year? b. How much is the total assets as of December 31, 2019? Problem 5. The ledger of PASS ALL Co. in 2019 includes the following: Cash 200.000 Accounts receivable 400,000 Inventory 1,000,000 Accounts payable 300.000 Nole payable 100,000 During the audit of PASS ALL'S 2019 financial statements, the following were noted by the auditor: Cash sales in 2020 amounting to P20,000 were inadvertently included as sales in 2019. PASS ALL recognized gross profit of P6,000 on the sales. A collection of a P40,000 accounts receivable in 2020 was recorded as collection in 2019. A cash discount of P2,000 was given to the customer. During January 2020, a short-term bank loan of P50,000 obtained in 2019 was paid together with P5,000 interest accruing in January 2020. The payment transaction in 2020 was inadvertently included as 2019 transaction. How much is the adjusted working capital as of December 31, 2019? Problem 6. ECQ Inc.'s accounts show the following balances Cost of goods sold Insurance expense Advertising expense Freight-out Loss on sale of equipment Rent expense (one-hali pertains sales department) Salaries expense (1/4 perlains to non-sales personnel Sales commission expense Bad debts expense Interest expense P320,000 75,000 25,000 30,000 7,000 80,000 150,000 10,000 5,000 5,000 a. How much is the total distribution costs (selling expenses)? b. How much is the total administrative expenses? Problem 7. Entity A has the following information: Inventory, beg. Inventory, end. Purchases Freight-in Purchase relums Purchase discounts 80,000 128,000 320,000 16,000 8,000 11,200 How much is Entity A's cost of salesStep by Step Solution
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