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Jag Company Financial Analysis 2019-2020

The document details financial information for Jag Company for the years ending December 31, 2019 and December 31, 2020. It provides that as of December 31, 2019 the company had total assets of P640,000 and liabilities of P180,000, with owner's equity of P460,000. In 2020 the company had revenues of P560,000 and expenses of P460,000, and the owner withdrew P60,000. As of December 31, 2020 total assets were P840,000, with owner's equity calculated at P500,000 and liabilities of P340,000.

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Benaid, Marian Nicole
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255 views1 page

Jag Company Financial Analysis 2019-2020

The document details financial information for Jag Company for the years ending December 31, 2019 and December 31, 2020. It provides that as of December 31, 2019 the company had total assets of P640,000 and liabilities of P180,000, with owner's equity of P460,000. In 2020 the company had revenues of P560,000 and expenses of P460,000, and the owner withdrew P60,000. As of December 31, 2020 total assets were P840,000, with owner's equity calculated at P500,000 and liabilities of P340,000.

Uploaded by

Benaid, Marian Nicole
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1-1 On December 31, 2019, Jag Company had total assets of P 640,000 and total liabilities of

P180,000. During 2020, the company had total revenues of P 560,000 and total expenses of P 460,000.
Also during 2020, the owner withdrew P 60,000. On December 31, 2020, total assets were P 840,000.

1. Compute the owner’s equity on December 31, 2019


Owner’s Equity/Capital= Assets - Liabilities
OE= 640,000 - 180,000
OE= P460,000

2. Compute the net income for the year 2020.


Net Income= Total Revenues - Total Expenses
Net Income= 560,000 - 460,000
Net Income= P100,000

3. Compute the total liabilities on December 31, 2020.


OE= 2019’ Owner’s Equity + Net Income - Drawings
OE= 460,000 + 100,000 – 60,000
December 31, 2020 Owner’s Equity= P500,000

Liabilities= Assets – Owner’s Equity


L= 840,000 - 500,000
L= P340,000

4. Compute the owner’s equity on December 31, 2020.


December 31, 2020 Owner’s Equity= December 31, 2019 Owner’s Equity + Net Income
– Drawings
December 31, 2020 Owner’s Equity= 460,000 + 100,000 - 60,000
December 31, 2020 Owner’s Equity= P500,000

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