Using the tabular analysis of business transactions, prepare, in good form, the income statement and balance...

Transcribed Image Text:

Using the tabular analysis of business transactions, prepare, in good form, the income statement and balance sheet of IE Company for the year ended December 31, 2022. The balances of specific accounts for IE Company as of December 31. 2021 are presented below. Cash Accounts receivable 12.582 155.865 Merchandise inventory 184,378 Prepaid asset 30,000 Land 500,500 Building 360,000 Accum. depn. - building - 120,000 Equipment 123,200 Accum. depn. - equipment -12.320 Accounts payable 148,756 Accrued expenses 48,732 Short-tenn loan payable 80,000 Long-term loan payable 240,000 Capital stock 500,000 Retained eamings 216.717 The following transactions occurred in 1. IE Company sold merchandise worth P30,000 at 100% margin. The customer paid in cash. 2. IE Company sold, on credit, merchandise worth P60,000 for P105,000. 3. IE Company bought merchandise worth $50,000 paying 25% in cash and the remainder under credit. 4. IE Company recorded salaries expense amounting to P25,000 in 2022. All but 10% remain unpaid as of year-end. 5. The accrued expenses as of end-2021 pertains to unpaid utilities. The entire amount was subsequently paid in 2022. 6. The prepaid asset pertains to a three-year insurance policy covering 2022, 2023 and 2024. P10,000 for the insurance coverage in 2022 was recognized as expense. 7. The entity took out a four-year loan in 2021 payable in equal annual installments of P80,000. The short-term portion recorded as of end-2021 was fully paid in 2022. Corresponding interest payment amounting to P6,000 was also made. (Hint: In preparing the balance sheet, recognize and present separately the portion of the loan maturing within the next 12 months as current.) 8. The building and equipment recorded depreciation of P120,000 and P24,640 during the year. 9. IE Company collected P225,000 of accounts receivable and paid P58,000 of accounts payable. Using the tabular analysis of business transactions, prepare, in good form, the income statement and balance sheet of IE Company for the year ended December 31, 2022. The balances of specific accounts for IE Company as of December 31. 2021 are presented below. Cash Accounts receivable 12.582 155.865 Merchandise inventory 184,378 Prepaid asset 30,000 Land 500,500 Building 360,000 Accum. depn. - building - 120,000 Equipment 123,200 Accum. depn. - equipment -12.320 Accounts payable 148,756 Accrued expenses 48,732 Short-tenn loan payable 80,000 Long-term loan payable 240,000 Capital stock 500,000 Retained eamings 216.717 The following transactions occurred in 1. IE Company sold merchandise worth P30,000 at 100% margin. The customer paid in cash. 2. IE Company sold, on credit, merchandise worth P60,000 for P105,000. 3. IE Company bought merchandise worth $50,000 paying 25% in cash and the remainder under credit. 4. IE Company recorded salaries expense amounting to P25,000 in 2022. All but 10% remain unpaid as of year-end. 5. The accrued expenses as of end-2021 pertains to unpaid utilities. The entire amount was subsequently paid in 2022. 6. The prepaid asset pertains to a three-year insurance policy covering 2022, 2023 and 2024. P10,000 for the insurance coverage in 2022 was recognized as expense. 7. The entity took out a four-year loan in 2021 payable in equal annual installments of P80,000. The short-term portion recorded as of end-2021 was fully paid in 2022. Corresponding interest payment amounting to P6,000 was also made. (Hint: In preparing the balance sheet, recognize and present separately the portion of the loan maturing within the next 12 months as current.) 8. The building and equipment recorded depreciation of P120,000 and P24,640 during the year. 9. IE Company collected P225,000 of accounts receivable and paid P58,000 of accounts payable.