Net income reported for 2016 is P200, 000, the adjusted balance for liability is P30, 000, capital beginning is P100, 000, and current assets totaled P150, 000.The amount of non-current assetsSelect one:a.P180,000b.P120,000c.P80,000d.P250,000
Question
Net income reported for 2016 is P200, 000, the adjusted balance for liability is P30, 000, capital beginning is P100, 000, and current assets totaled P150, 000.The amount of non-current assetsSelect one:a.P180,000b.P120,000c.P80,000d.P250,000
Solution
To answer this question, we need to use the accounting equation: Assets = Liabilities + Equity.
From the question, we know that:
Net income for 2016 = P200,000 Adjusted balance for liability = P30,000 Capital beginning = P100,000 Current assets = P150,000
First, we need to calculate the total equity. The net income is added to the beginning capital to get the total equity. So, Equity = Net income + Beginning capital = P200,000 + P100,000 = P300,000.
Next, we substitute the values of liabilities and equity into the accounting equation to find the total assets. So, Assets = Liabilities + Equity = P30,000 + P300,000 = P330,000.
The question asks for the amount of non-current assets. We know that total assets is the sum of current assets and non-current assets. So, Non-current assets = Total assets - Current assets = P330,000 - P150,000 = P180,000.
So, the answer is a. P180,000.
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