Problem B. Analysis of SOLOMONS Corp. records disclosed the following changes for the year 2020 and the supplementary data listed below: Cash - 500,000 increase; Accounts Receivable - 70,000 increase; Inventory- 270,000 decrease; Prepaid expenses - 10,000 decrease; Accounts Payable - 50,000 increase; Accrued salaries - 100,000 increase; unearned revenue - 50,000 increase During 2020, the owner paid P200,000 to settle all its loans from the bank. Interest of P5,000 was also settled on December 31, 2020. There was P10,0000 interest on loans payable at December 31, 2019. The owner also made investments in 2020 of P15,000.

Problem B. Analysis of SOLOMONS Corp. records disclosed the following changes for the year 2020 and the supplementary data listed below: Cash - 500,000 increase; Accounts Receivable - 70,000 increase; Inventory- 270,000 decrease; Prepaid expenses - 10,000 decrease; Accounts Payable - 50,000 increase; Accrued salaries - 100,000 increase; unearned revenue - 50,000 increase During 2020, the owner paid P200,000 to settle all its loans from the bank. Interest of P5,000 was also settled on December 31, 2020. There was P10,0000 interest on loans payable at December 31, 2019. The owner also made investments in 2020 of P15,000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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