Reference no: EM132940396

Problem 1 - Milo Corporation provided you with the following summary of total assets and liabilities at January 1, 2020 and at December 31, 2020:

Assets Liabilities

January 1, 2020 P9,000,000 P3,200,000

December 31, 2020 12,000,000 4,500,000

During 2020, Nido issued 10,000 shares of its 100 par ordinary share at P10 per share and declared dividends of 280,000. There were no other changes affecting the equity accounts.

Required - Compute the profit for 2020.

Problem 2 - Cyber Company's total equity increased by P320,000 during 2020. New shareholder's investment during the year totaled P650,000. Total revenues during the year were P5,000,000 and total expenses were P4,600,000. Cash increased by P75,000 during the year.

Required - Compute the amount of dividends declared during 2020.

Problem 3 - The changes in the account balances and the following additional information are taken from the accounts of Great Coffee Corporation for the year 2020:

Increase (Decrease)

Cash P142,500

Accounts receivable (30,000)

Inventory 202,500

Buildings and equipment (net) 630,000

Accounts payable (172,500)

Bonds payable 375,000

Share capital 300,000

Share premium 45,000

Dividends for 2020 were P82,500. There were no transactions affecting retained earnings other than dividends and profit:

Required - Compute the profit for 2020.

Problem 4 - Nana Company keeps single-entry records for her business. The accounts payable per files on May 1 was P110,000, and on May 31 was P140,000. During the month, P45,000 ws paid for cash purchases; P22,500 was allowed on purchase returns; P280,000 was paid on accounts payable; and P10,000 was paid for freight-in. The inventory on May 1 was P50,000 and on May 31 was P60,000.

Required - Compute the cost of sales for the month of May.