Scribd
Upload
78 views2 pages

Output No. 2 - PAS 1 Instruction: Write Your Answers On Long Bond Papers

The document provides financial information for two companies, Black Pink Inc. and OnePiece Company, and instructions to prepare financial statements for each: 1) For Black Pink Inc., prepare a profit and loss statement for the year ended December 31, 2019 using the nature and function of expense methods with supporting notes, including additional information on inventory, a loss from a typhoon, and the company's tax rate. 2) For OnePiece Company, prepare a statement of financial position as of December 31, 2019 using the provided financial information, with supporting notes including information on notes payable that was extended to a later maturity date.

Uploaded by

nmdl123
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
78 views2 pages

Output No. 2 - PAS 1 Instruction: Write Your Answers On Long Bond Papers

The document provides financial information for two companies, Black Pink Inc. and OnePiece Company, and instructions to prepare financial statements for each: 1) For Black Pink Inc., prepare a profit and loss statement for the year ended December 31, 2019 using the nature and function of expense methods with supporting notes, including additional information on inventory, a loss from a typhoon, and the company's tax rate. 2) For OnePiece Company, prepare a statement of financial position as of December 31, 2019 using the provided financial information, with supporting notes including information on notes payable that was extended to a later maturity date.

Uploaded by

nmdl123
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Output No.

2 – PAS 1

Instruction: Write your answers on long bond papers.

I. Prepare the Profit or Loss Statements for BLACK PINK, Inc. for the year ended December
31, 2019 using both Nature and Function of Expense Methods with supporting notes.

Depreciation – building and office equipment ₱ 145,000


Sales commissions and salaries 182,000
Inventory, January 1, 2019 341,000
Store supplies expense 56,000
Purchase returns and allowances 62,000
Bad debts expense 27,000
Freight-in 135,000
Sales discounts 49,000
Purchases 1,730,000
Delivery expense 77,000
Office supplies expense 19,000
Loss on sale of equipment 50,000
Insurance and taxes 85,000
Sales 3,529,000
Rent revenue 105,000
Office salaries 320,000
Advertising expense 170,000
Sales returns and allowances 121,000
Purchase discounts 41,000
Depreciation – store equipment 96,000
Interest expense 37,000

Additional information:

a. A physical count determined that the December 31, 2019 ending inventory is ₱ 446,000.
b. A typhoon destroyed a warehouse resulting in a pretax loss of ₱ 120,000.
c. The company’s income tax rate is 30%.

1
II. The ONEPIECE Company gathered the following information on December 31, 2019:

Land ₱ 1,400,000
Income taxes payable 720,000
Provision for warranties 200,000
Cash 380,000
Equity securities through profit or loss 485,000
Buildings 4,340,000
Accumulated depreciation - Buildings 1,800,000
Equipment 2,960,000
Accumulated depreciation - Equipment 1,300,000
Investment property 2,900,000
Bonds payable 4,000,000
Prepaid expenses 290,000
Premium on bonds payable 430,000
Mortgage payable 1,600,000
Patents P820,000
Accumulated amortization – Patents 230,000
Trademarks P520,000
Accumulated amortization - Trademarks 150,000
Notes Payable 1,000,000
Share premium 1,820,000
Retained earnings 3,605,000
Accounts payable 940,000
Inventories 450,000
Wages payable 410,000
Treasury shares (at cost) 180,000
Current portion of mortgage payable 400,000
Non-current asset held for sale 1,200,000
Preference share capital 600,000
Ordinary share capital 1,100,000
Other financial assets 1,600,000
Accounts Receivable 1,850,000
Notes Receivable (due July 1, 2020) 1,000,000
Allowance for uncollectible accounts (70,000)

The notes payable was issued on June 30, 2018 and are supposed to mature on June
30, 2020. As of December 31, 2019, the company has negotiated with the lender to
extend the maturity date to June 30, 2021.

Requirement:
Prepare the Statement of Financial Position for ONEPIECE Company with
supporting notes.

You might also like