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14. In its December 31, 2005 balance sheet, Kemp should report accrued liabilities of

14. In its December 31, 2005 balance sheet, Kemp should report accrued liabilities of

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Kemp Company must determine the December 31, 2005, year-end accruals for advertising and rent expense. A P50,000 advertising bill was received January 7, 2006, comprising cost of P35,000 for December 2006 issues, and P15,000 for advertisements in January 2006 issues of the newspaper. advertisements in A store lease, effective December 16, 2004, calls for fixed rent of P120,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P6,000,000 per calendar year is payable on January 31 of the following year. Net sales for 2005 were P9,000,000. 14. In its December 31, 2005 balance sheet, Kemp should report accrued liabilities of a. 260,000 b. 185,000 c. 210,000 d. 245,000
Transcribed Image Text:Kemp Company must determine the December 31, 2005, year-end accruals for advertising and rent expense. A P50,000 advertising bill was received January 7, 2006, comprising cost of P35,000 for December 2006 issues, and P15,000 for advertisements in January 2006 issues of the newspaper. advertisements in A store lease, effective December 16, 2004, calls for fixed rent of P120,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P6,000,000 per calendar year is payable on January 31 of the following year. Net sales for 2005 were P9,000,000. 14. In its December 31, 2005 balance sheet, Kemp should report accrued liabilities of a. 260,000 b. 185,000 c. 210,000 d. 245,000
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