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WEEK 2 REQUIREMEN
PROBLEM 1
Additional Information:
REQUIREMENT #1: Comparative Income Statement for the years ended December 31,
COVID
Comparative Income Statement
For the Years ended December 31,2018
Sales
Less: Sales Returns & Allowances
Sales Discounts
Net Sales
Gross Profit
-
Total Income
Operating Expenses
Advertising Expense
Depreciation Expense-B
Depreciation Expense- M & Eq
Doubtful Accounts Expense
Freight Out
Salaries Expense
Supplies Expense
Insurance Expense
Taxes & Licenses
Loss on Sale of Equipment
Total Operating Expenses
Operating Income
Less: Finance Cost- Interest Expense
COVID
Comparative Statement of Changes in Retain
For the years ended December 31, 2018
Beginning,Balances, Jan.1
Net Income (Profit)
Dividends
REQUIREMENT #3: Statement of Changes in Shareholdler's Equity for the year end
Common
Beginning, Balances, Jan.1 1,000,000 500,0
Common
Beginning, Balances, Jan.1 1,000,000 500,0
Issuance of Common Stock 200,000
Issuance of Preferred Stock
Net Income(Profit)
Dividends
____________________________
Ending Balances, December 31, 2019 1,200,000
Current Assets:
Cash and Cash Eqquivalents
Accounts Receivable
Allowance for Doubtful Accounts
Merchandise Inventory, Dec.31
Prepaid Advertising
Prepaid Insurance
Supplies Inventory
Total Current Assets
Non-Current Assets
Land
Building
Accumulated Depreciation-Building
Machinery & Equipment
Accumulated Depreciation- Machinery & Equipment
Total Non-Current Assets
TOTAL ASSETS
Current Liabilities:
Accounts Payable
Accrued Salaries Expense
Accrued Taxes and Licenses
Total Current Liabilities
Non-Current Liabilities:
Bonds Payable
Long-Term Notes Payable
Mortgage Payable
Total Non-Current Liabilities
TOTAL LIABILITIES
TOTAL LIABILITIES
Shareholders' Equity
Common Stock, P10 par value
Preferred Stock, P60 par value
Retained Earnings, Dec.31
Share Premium
Total Shareholders' Equity
WEEK 2 REQUIREMENT
r of COVID-19 COMPANY. As your first job, you are asked by the firm's VP-Finance to
company for the years ended December 31, 2018 and 2019. Upon inspection of the
llowing information:
500,000.
equipment with a new equipment. The new equipment was purchased for P400,000 while the old
Payable but later on borrowed another P500,000 Long-term Notes Payable from the same
COVID-19 COMPANY
Comparative Income Statement
Years ended December 31,2018 and 2019
2018 2019
1,000,000 1,500,000
(60,000) (80,000)
(40,000) (70,000)
900,000 1,350,000
150,000 200,000
500,000 700,000
60,000 80,000
(40,000) (50,000)
(20,000) (30,000)
650,000 900,000
(200,000) (250,000)
450,000 650,000
450,000 650,000
450,000 700,000
450,000 700,000
10,000 20,000
70,000 70,000
60,000 80,000
10,000 20,000
20,000 35,000
40,000 60,000
10,000 20,000
20,000 20,000
20,000 25,000
0 40,000
260,000 390,000
190,000 310,000
(40,000) (60,000)
150,000 250,000
nges in Retained Earnings for the years ended December 31, 2018 and 2019.
COVID-19 COMPANY
e Statement of Changes in Retained Earnings
ears ended December 31, 2018 and 2019
2018 2019
300,000 350,000
150,000 250,000
(100,000) (150,000)
350,000 450,000
COVID-19 COMPANY
Statement of Changes in Shareholder's Equity
For the year ended December 31, 2019
ancial Position as of the years ended December 31, 2018 and 2019
COVID-19 COMPANY
Comparative Statement of Financial Position
As of the years ended December 31, 2018 and 2019
2018 2019
900,000 1,500,000
300,000 500,000
ul Accounts (30,000) (50,000)
ry, Dec.31 200,000 250,000
50,000 30,000
120,000 100,000
50,000 30,000
1,590,000 2,360,000
1,000,000 1,500,000
1,500,000 1,500,000
Building (210,000) (280,000)
600,000 800,000
Machinery & Equipment (180,000) (200,000
2,710,000 3,320,000
4,300,000 5,680,000
150,000 220,000
60,000 90,000
40,000 20,000
250,000 330,000
1,500,000 1,000,000
200,000 500,000
____-____ 500,000
Liabilities 1,700,000 2,000,000
1,950,000 2,330,000
1,950,000 2,330,000
LAND BUILDING
COST
Beg. Balance 1,000,000 1,500,000
Add: New Acquisitions 500,000 -
Less: Disposal sale/sale of old assets ___-___ -
End. Balance 1,500,000 1,500,000
ACCUMULATED DEPRECIATION:
Beg. Balance 210,000
Add: Depreciation Expense 70,000
Less: Related Depreciation of Disposed ____-______
End. Balance 280,000
arnings TOTAL
50,000 2,200,000
arnings TOTAL
50,000 2,200,000
300,000
600,000
250,000
150,000) (150,000)
____________________________
3,350,000
2019
1,500,000
500,000
(50,000)
250,000
30,000
100,000
30,000
2,360,000
1,500,000
1,500,000
(280,000)
800,000
(200,000)
3,320,000
5,680,000
220,000
90,000
20,000
330,000
1,000,000
500,000
500,000
2,000,000
2,330,000
2,330,000
1,200,000
800,000
450,000
900,000
3,350,000
5,680,000
nt and Equipment
ember 31, 2019
Machinery
BUILDING & Equipment
1,500,000 600,000
400,000
(200,000) WORKBACK
1,500,000 800,000
210,000 180,000
70,000 80,000
______ (60,000) WORKBACK
280,000 200,000
1,220,000 600,000
100,000
100,000
200,000
(60,000) 140,000
(40,000)