Economics Answers

STATEMENT OF FINANCIAL POSITION  

PRACTICE SET 5 

1. The Creep Company has the following accounts in year-end 2020.  
2. Kindly prepare the SFP in both report and account forms. 

Accounts Payable ₱    600,000 

Unearned Revenue 1,210,000 

Salaries Payable- current 120,000 

Owner’s Withdrawals   280,000 

Owner’s Capital 1,500,000 

Comprehensive Income  3,000,000  

Total Current Assets 80% of total liabilities  

Cash 250,000 

Inventories 480,000 

Prepaid Expenses 600,000 

Property, Plant and Equipment ? 

Accounts Receivable ? 

STATEMENT OF COMPREHENSIVE INCOME

Practice Set 12

1. The Swift Company presented the balances of each income and expense account and you are tasked to make its EXPANDED INCOME STATEMENT for the year ended 2020.

2. Always apply the income tax expense as 25% of operating profit.

Gross Sales = ₱ 3,822,300

Sales Returns= ₱ 219,700

Gross Purchases = ₱ 1,000,000

Purchase Discounts = ₱ 180,000

Beginning Inventories = ₱ 920,500

Ending Inventories = ₱ 450,800

Distribution Expenses = ₱ 760,200

Administrative Expenses = ₱ 440,900

Other Comprehensive Income = ₱ 210,000

suppose the government implements a price ceiling of $20/unit in this market. Is this price ceiling binding on the market? What are the quantities demanded and supplied at the price ceiling? How many units are exchanged at this price? Given the effects of the policy, is there a potential for illegal trade? Briefly explain your answers where necessary.