44. During the year, Maldives Company, in its trial balance reported revenues of P130,000 and expenses of P80,000 before adjustments for the following items: P20,000 which was collected in advance, recorded initially as a liability was carned by yearend; P10,000 of rentals initially recorded under prepaid rent expires by yearend; P8,000 unrecorded and uncollected services rendered to customers; and P3,500 employees salaries incurred by yearend, remains unrecorded and unpaid. After the adjusting and closing entries have been posted, the balance of the Income Summary account is a. PO b. P48,500 c. P50,000 d. P64,500
44. During the year, Maldives Company, in its trial balance reported revenues of P130,000 and expenses of P80,000 before adjustments for the following items: P20,000 which was collected in advance, recorded initially as a liability was carned by yearend; P10,000 of rentals initially recorded under prepaid rent expires by yearend; P8,000 unrecorded and uncollected services rendered to customers; and P3,500 employees salaries incurred by yearend, remains unrecorded and unpaid. After the adjusting and closing entries have been posted, the balance of the Income Summary account is a. PO b. P48,500 c. P50,000 d. P64,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![44. During the year, Maldives Company, in its trial balance reported revenues of P130,000 and expenses of
P80,000 before adjustments for the following items: P20,000 which was collected in advance, recorded
initially as a liability was earned by yearend; P10,000 of rentals initially recorded under prepaid rent expires by
yearend; P8,000 unrecorded and uncollected services rendered to customers; and P3,500 employees salaries
incurred by yearend, remains unrecorded and unpaid. After the adjusting and closing entries have been
posted, the balance of the Income Summary account is
a. PO
ь. Р48,500
с. Р50,000
d. P64,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6f18b004-2225-4ed6-bd60-e1b1eceac72c%2Faf9c125c-f9ae-490e-9fc4-f50eb798a296%2Ft6x3w0e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:44. During the year, Maldives Company, in its trial balance reported revenues of P130,000 and expenses of
P80,000 before adjustments for the following items: P20,000 which was collected in advance, recorded
initially as a liability was earned by yearend; P10,000 of rentals initially recorded under prepaid rent expires by
yearend; P8,000 unrecorded and uncollected services rendered to customers; and P3,500 employees salaries
incurred by yearend, remains unrecorded and unpaid. After the adjusting and closing entries have been
posted, the balance of the Income Summary account is
a. PO
ь. Р48,500
с. Р50,000
d. P64,500
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