FINACT 3

Asuncion,

JaniceBuduan,

Dianne JaneLubiton,

Joshua

QUESTION-----Problem 15-1

On January 1, the capital of Console Company was P1,700,000 and on December 31, the capital
wasP2,400,00. During the year, the owner withdrew merchandise costing P 100,000 and with sale price
of P 180,000and paid a P 1,000,000 note payable of the business with interest of 12% for six months
with a check drawn onpersonal checking account.What is the Net Income or Loss for the current Year?

a.260,000 income

b.260,000 loss

c.180,000 income

d.180,000 loss

Problem 15-2

During the first year, Exel Company issued 15,000 shares with P100 par value at P150 per share. At year-
end, theentity issued 2,000 shares in payment of current obligations of P250, 000. Dividends of
P500,000 were paid duringthe year. Total liabilities at the end of the year amounted to P200,000 and
total assets at the end of the yearequalled P3,000,000.What is the net income for the first year of
operations?

a.1,500,000

b. 800,000

c.500,000

d.300,000