Hint: “Discount on loans payable” is a contra-accountto loans payable.b.Prepare a partial “notes” showing the breakdowns of the selected line items.ASSETSNotesCurrent assets:Cash and cash equivalents6Trade and other receivables7InventoriesPrepaid insuranceTotal current assetsNoncurrent assets:Property, plant and equipment8Total noncurrent assetsTOTAL ASSETS1LIABILITIES AND EQUITYNotesCurrent liabilities:Trade and other payables9Current tax liabilityTotal current liabilitiesNoncurrent liabilities:Loans payable - net10Total noncurrent liabilitiesTOTAL LIABILTIESEquity:Owner's CapitalTOTAL EQUITYTOTAL LIABILITIES & EQUITY
Encircle the letter of your choice.1.A business reports total income of ₱100,000 and total expenses of ₱80,000. The profit (loss) isa.20,000b.(20,000)c.180,000d.100,0002.Which of the following is not presented in an income statement?3.A business has net sales of ₱100,000, cost of sales of ₱60,000 and other operating expenses of ₱40,000. Thegross profit of the business is4.The income statement of ABC Company shows gross profit. ABC Company’s income statement is mostlikely to have been prepared using
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Balance Sheet,Generally Accepted Accounting Principles,statement of financial position of Aubrey Lynn