ter 4- Preparing the Financial Statements 3 The adjusted trial balance of Stratosphere Company includes the following accounts at December 31, 2019: 5,000,000 28,000 180,000 520,000 2,800,000 500,000...

How much was the net profit before finance cost and income tax?ter 4- Preparing the Financial Statements<br>3 The adjusted trial balance of Stratosphere Company includes the<br>following accounts at December 31, 2019:<br>5,000,000<br>28,000<br>180,000<br>520,000<br>2,800,000<br>500,000<br>720,000<br>110,000<br>800,000<br>16,000<br>100,000<br>400,000<br>Sales revenue<br>Commission income<br>Interest expense<br>Inventory, December 31, 2019<br>Purchases (net of returns)<br>Sales commissions<br>Administrative salaries<br>Office supplies expense<br>Dividends declared<br>Dividend income<br>Gain on sale of equipment<br>Rent expense<br>Unrealized gain on investments at fair value<br>through profit or loss<br>Unrealized gain on investments at fair value<br>through other comprehensive income<br>Depreciation expense-store equipment<br>Depreciation expense-office equipment<br>Freight-in<br>Freight-out<br>55,000<br>88,000<br>70,000<br>50,000<br>80,000<br>120,000<br>Additional information:<br>(1)<br>(2)<br>(3)<br>Merchandise inventory, January 1, 2019, P450,000.<br>Income tax rate is 30%.<br>Rent expense is allocated 60% to selling and 40% to<br>administrative.<br>How much was the profit before finance cost and income tax?<br>a.<br>P2 100 000<br>

Extracted text: ter 4- Preparing the Financial Statements 3 The adjusted trial balance of Stratosphere Company includes the following accounts at December 31, 2019: 5,000,000 28,000 180,000 520,000 2,800,000 500,000 720,000 110,000 800,000 16,000 100,000 400,000 Sales revenue Commission income Interest expense Inventory, December 31, 2019 Purchases (net of returns) Sales commissions Administrative salaries Office supplies expense Dividends declared Dividend income Gain on sale of equipment Rent expense Unrealized gain on investments at fair value through profit or loss Unrealized gain on investments at fair value through other comprehensive income Depreciation expense-store equipment Depreciation expense-office equipment Freight-in Freight-out 55,000 88,000 70,000 50,000 80,000 120,000 Additional information: (1) (2) (3) Merchandise inventory, January 1, 2019, P450,000. Income tax rate is 30%. Rent expense is allocated 60% to selling and 40% to administrative. How much was the profit before finance cost and income tax? a. P2 100 000

Jun 09, 2022
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