PROBLEM SOLVING

1. Monde company's total assets on December 31, 2018 were 30% higher than the total assets on January 1, 2018.

Total equity on January 1, 2016 amounting to P240,000 was 25% lower than the total liabilities on that date. During

2018, total liabilities increased by 15%. Monde company's equity at December 31, 2018 is

2. The assets and liabilities of Maurice Company are as follows:

December 31, 2018 December 31, 2017

Assets P 2,800,000 P 4,200,000

Liabilities P 1,400,000 P 3,600,000

During the year, Maurice Company made an additional investment of P 100, 000 and withdrew P70,000.

The net income (loss) for 2018 is

3. Some account balances included in the ledger of Sophia Company at the end of 2018 are as follows:

Accounts payable 300,000 A

ccrued interest income 80,000

Accounts receivable 250,000

Accrued salaries expense 90,000

Administrative expenses 150,000

Accumulated depreciation 150,000

Cash in bank 100,000

Allowance for doubtful accounts 60,000

Deferred tax assets 40,000 Bonds payable 500,000

Finance costs 90,000 Capitalized development costs 600,000

Land 900,000 Finance lease obligation 140,000

Machinery 300,000

Net loss - exchange differences 60,000

Notes payable 150,000

Premium on bonds payable 100,000

Office equipment 220,000

Provision related to pensions 200,000

Prepaid supplies 60,000

Retained earnings 380,000

Share capital - ordinary 390,000

Revaluation surplus 100,000

Treasury shares 50,000

Unearned service income 100,000

The sum of accounts with debit balance is