17. Chapman Inc. operates a retail store and must determine the proper December 31, 20x3, year-end accrual for the following expenses: ● ● ● The store lease calls for fixed rent of P12,000 per month, payable at the beginning of the month, and additional rent equal to 6% of net sales over P2,500,000 per calendar year, payable on January 31, of the following year. Net sales for 20x3 are P4,500,000. An electric bill of P8,500 covering the period 12/16/20x3 through 1/15/20x4 was received January 22, 20x4. A P4,000 telephone bill was received January 7, 20x4, covering: ACCNTG2♥ 4 Service in advance for January 20x4 Local and toll calls for December 20x3 In its December 31, 20x3 balance sheet, Chapman should report accrued liabilities of a. 150, 750 b. 131,000 c. 128,250 d. 126,750 P1,500 2,500
17. Chapman Inc. operates a retail store and must determine the proper December 31, 20x3, year-end accrual for the following expenses: ● ● ● The store lease calls for fixed rent of P12,000 per month, payable at the beginning of the month, and additional rent equal to 6% of net sales over P2,500,000 per calendar year, payable on January 31, of the following year. Net sales for 20x3 are P4,500,000. An electric bill of P8,500 covering the period 12/16/20x3 through 1/15/20x4 was received January 22, 20x4. A P4,000 telephone bill was received January 7, 20x4, covering: ACCNTG2♥ 4 Service in advance for January 20x4 Local and toll calls for December 20x3 In its December 31, 20x3 balance sheet, Chapman should report accrued liabilities of a. 150, 750 b. 131,000 c. 128,250 d. 126,750 P1,500 2,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Pls answer number 17
Transcribed Image Text:17. Chapman Inc. operates a retail store and must determine the
proper December 31, 20x3, year-end accrual for the following
expenses:
●
The store lease calls for fixed rent of P12,000 per month,
payable at the beginning of the month, and additional rent
equal to 6% of net sales over P2,500,000 per calendar year,
payable on January 31, of the following year. Net sales for
20x3 are P4,500,000.
An electric bill of P8,500 covering the period 12/16/20x3
through 1/15/20x4 was received January 22, 20x4.
A P4,000 telephone bill was received January 7, 20x4,
covering:
ACCNTG2♥ 4
Service in advance for January 20x4
Local and toll calls for December 20x3
In its December 31, 20x3 balance sheet, Chapman should report
accrued liabilities of
a. 150, 750
b. 131,000
c. 128,250
d. 126,750
P1,500
2,500
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