4 Clark Co.'s advertising expense account had a balance of P146.000 at December 31, 20x3, before any necessary year-end adjustment relating to the following: Included in the P146,000 is the P15,000 cost of printing catalogs for a sales promotional campaign in January 20x4. Radio advertisements broadcast during December 20x3 were billed to Clark on January 2, 20x4. Clark paid the P9,000 invoice on January 11, 20x4. What amount should Clark report as advertising expense in its income statement for the year ended December 31, 20x3? a. 122.000 b. 131,000 c. 140,000 d. 155,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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4. Clark Co.'s advertising expense account had a balance of
P146,000 at Deocember 31, 20x3, before any necessary year-end
adjustment relating to the following:
Included in the P146,000 is the P15,000 cost of printing
catalogs for a sales promotional campaign in January 20x4.
• Radio advertisements broadcast during December 20x3
were billed to Clark on January 2, 20x4. Clark paid the
P9,000 invoice on January 11, 20x4.
What amount should Clark report as advertising expense in its
income statement for the year ended December 31, 20x3?
a. 122,000
b. 131,000
c. 140,000
d. 155,000
5. In Yew Co.'s 20X5 annual report, Yew described its social
awareness expenditures during the year as follows:
"The Company contributed P250,000 in cash to youth and
educational programs. The Company also gave P140,000 to health
and human-service organizations, of which PS0,000 was
contributed by employees through payroll deductions. In
addition, consistent with the Company's commitment to the
environment, the Company spent P100,000 to redesign product
packaging."
What amount of the above should be included in Yew's income
Statement as charitable contributions expense?
a, 310,000
b. 390,000
C. 410,000
d. 490,000
Transcribed Image Text:4. Clark Co.'s advertising expense account had a balance of P146,000 at Deocember 31, 20x3, before any necessary year-end adjustment relating to the following: Included in the P146,000 is the P15,000 cost of printing catalogs for a sales promotional campaign in January 20x4. • Radio advertisements broadcast during December 20x3 were billed to Clark on January 2, 20x4. Clark paid the P9,000 invoice on January 11, 20x4. What amount should Clark report as advertising expense in its income statement for the year ended December 31, 20x3? a. 122,000 b. 131,000 c. 140,000 d. 155,000 5. In Yew Co.'s 20X5 annual report, Yew described its social awareness expenditures during the year as follows: "The Company contributed P250,000 in cash to youth and educational programs. The Company also gave P140,000 to health and human-service organizations, of which PS0,000 was contributed by employees through payroll deductions. In addition, consistent with the Company's commitment to the environment, the Company spent P100,000 to redesign product packaging." What amount of the above should be included in Yew's income Statement as charitable contributions expense? a, 310,000 b. 390,000 C. 410,000 d. 490,000
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