Income Statement-Part 11 - 2nd Flr, GF Partners Bldg, 139...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
2 nd Flr, GF Partners Bldg, 139 H.V. dela Costa, Salcedo Village, Makati City 3 rd Flr. Equitable PCI Building, 2070 Claro M. Recto ,Manila Tel.7348895/7349198 Practical Accounting 1 Prof. Rommel M. Valdez Income Statement – Part II Retained Earnings 1. Witt Co. incurred the following infrequent losses during 2004: P175,000 from a major strike by employees. P150,000 from an early extinguishment of debt. P125,000 from the abandonment of equipment used in the business. In Witt’s 2004 income statement, the total amount of losses considered to be ordinary should be a. P275,000 b. P450,000 c. P325,000 d. P150,000 2. Following are losses incurred by Miyata Corp. during 2004. All items are considered to be material in amount. In July, Miyata’s chemical plant was destroyed by an earthquake resulting in a loss of P800,000. The region where the plant was located had not had an earthquake in 15 years. In September, a loss of P200,000 resulted from the retirement of Miyata’s bonds. The bonds had been classified as current liabilities on the December 31, 2003 balance sheet because of their expected retirement in 2004. In November, a loss of P150,000 was incurred on the sale of Miyata’s investment in bonds of Grand Corp. The bonds constitutes 5% of the net assets of Grand Corp. Miyata has been holding these bonds as an investment for several years. This is the only
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

Income Statement-Part 11 - 2nd Flr, GF Partners Bldg, 139...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online