5. CRS Co. is preparing its December 31, 2018, year – end financial statements.The following information was gathered.- The bill for December's utility costs of P30 000 was received and paid onJanuary 10, 2019.- AP 20 000 advertising bill was received on January 2, 2019. Of the totalbilling, P15 000 pertain to advertisements in December 2018.- A lease, effective December 16, 2017, calls for a fixed rent of P100 000per month, payable one month after the commencement of the leaseand every month thereafter. In addition, rent equal to 5% of net salesover P1 000 000 per year is payable on January 31 of the following year.- Total cash sales and collections on accounts amounted to P1 000 000.accounts receivable has a net increase of P200 000. Commissions of15% of sales are paid on the same day cash is received from customers.Requirement: Compute for the accrued liabilities on Dec. 31, 2018.

Accrued Liabilities are the liabilities that are due for payment but have not been paid yet.

5. CRS Co. is preparing its December 31, 2018, The following information was gathered. - The bill for December's utility costs of January 10, 2019. - AP 20 000 advertising bill was received billing, P15 000 pertain to advertisemen - A lease, effective December 16, 2017, c per month, payable one month after the and every month thereafter. In addition, : over P1 000 000 per year is payable on Total cash sales and collections on acco-

5. CRS Co. is preparing its December 31, 2018, The following information was gathered. - The bill for December's utility costs of January 10, 2019. - AP 20 000 advertising bill was received billing, P15 000 pertain to advertisemen - A lease, effective December 16, 2017, c per month, payable one month after the and every month thereafter. In addition, : over P1 000 000 per year is payable on Total cash sales and collections on acco-

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6P

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CRS Co. is preparing its December 31, 2018 year – end financial statements. The following information was gathered. The bill for December’s utility costs of P30 000 was received and paid on January 10, 2019. A P 20 000 advertising bill was received on January 2, 2019. Of the total billing, P15 000 pertain to advertisements in December 2018. A lease, effective December 16, 2017, calls for a fixed rent of P100 000 per month, payable one month after the commencement of the lease and every month thereafter. In addition, rent equal to 5% of net sales over P1 000 000 per year is payable on January 31 of the following year. Total cash sales and collections on accounts amounted to P1 000 000. accounts receivable has a net increase of P200000. Commissions of 15% of sales are paid on the same day cash is received from customers. Requirement: Compute for the accrued liabilities on Dec. 31, 2018.
Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent expenses. A P50,000 advertising bill was received on January7, 2021, comprising of P37,500 for advertisements in December 2020 andP12,500 for advertisements in January 2021 issued of the newspaper. A store lease effective December 1, 2020 calls for a fixed rent of P120,000 permonth payable at the beginning of each month. In addition, rent equal to 5% ofnet sales over P3,000,000 per month is payable on the 20th day of the followingmonth. Net sales for December were P5,500,000.In its December 31, 2020 statement of financial position, Apachi should reportaccrued liabilities of?
The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities. Note: Complete the entire question in Excel and format each answer to two decimal places. Then enter the answers into the provided spaces below with two decimal places. The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 $1,098 2020 1,043 2021 847 2022 694 2023 512 Thereafter Total minimum lease commitments $5,638 1,444 Compute the present value of GAP's operating leases using the following assumptions Assmption Discount rate Round remaining lease term to the nearest whole year Year Present Value 1 $ 0 2 0 3 0 4 0 5 0 >5 0 $ 0 6%
Company must determine the December 31, 2020year-end accruals for advertising and rent expenses. A P5,000 advertising bill was received January7, 2021. It related to cost of P3,750 for advertisements in December 2020 issues and P1,250 for advertisements in January2021issues of the newspaper. A store lease, effective December 16, 2020c alls for fixed rent of P12,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P3,000,000 per calendar year is payable on January31 of the following year. Net sales for 2020were P5,500,000. In its December31, 2020 balance sheet, company should report accrued liabilities of
Capricorn Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses. A P2,000 advertising bill was received January 6, 2020. It related to costs of P1,500 for advertisements in December 2019 issues and P500 for advertisements in January 2, 2020 issues of the newspaper. A store lease, effective December 15, 2018, calls for fixed rent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2019 were P2,200,000. In its December 31, 2019 statement of financial position, Capricorn should report accrued liabilities of: P51,500 P53,900 P56,800 P56,300
THIRTYFIRST Company must determine the December 31, 2021 year end accruals for advertising and rent expenses. A P500 advertising received January 7, 2022, comprising costs of P375 for advertisements in December 2021 issues, and P125 for advertisements in January 2022 issues of the newspaper. A store lease, effective December 16, 2020, calls for fixed rent of P1,200 per month, payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P300,00 per calendar year is payable on January 31 of the following year. Net sales for 2021 were P550,00. In the December 31, 2021 balance sheet, THIRTYFIRTS Company should report accrued liabilities. 13,475 13,000 12,875 13,100
Pythagoras Company must determine the December 31, 2021 year-end accruals for advertising and rent expenses. A P2,000 advertising bill was received on January 7, 2022. It related to costs of P1,500 for advertisements in December 2021 issues and P500 for advertisements in January 2, 2022 issues of the newspaper. A store lease effective December 16, 2020 calls for fixed rent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2021 and 2020 were P2,200,000 and P1,500,000 respectively. In its December 31, 2021 statement of financial position, Pythagoras should report accrued liabilities of:
luna Corporation must determine the December 31, 2020 year-end accruals for advertising and rent expenses. A P50,000 advertising bill was received January 10, 2021, comprising costs of P37,500 for advertisements in December 2020 issues and P12,500 for advertisements in January 2021 issues of the newspaper.A store lease, effective December 16, 2020, 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 2020 amounted to P7,500,000.What is the total accrued liabilities that should be reported by luna on its statement of financial position as at December 31, 2020?
In January 1,2020, Orange Corporation leased a building to Juce Company under a four-year operating lease. The monthly rentals for 2020, 2021, 2022 and 2023 are as follows: P100,000, P150,000, P200,000 and P250,000, respectively. Rentals are payable at the end of each month. All rental payments within the year were made when due. What amount should Orange Corporation report as rent receivable on December 31, 2020?
On May 1, 2021, ABC Company leased furniture and fixtures from XYZ Company under a one-year contract. The lease payments are as follows: First 2 months at P12,000 per month Next 4 months at P18,000 per month Next 3 months at P15,000 per month Last 3 months at P10,000 per month After the first year, the rent continues at P8,000 per month. What are the amounts reported in ABC financial statements for the year 2021?
On June 1, 2018, ABC Company entered into a 5-year nonrenewable lease, commencing on that date, for office space and made the following payments to the lessor: Bonus to obtain a lease for P300,000; First months rent for P100,000 and Last month’s rent for P100,000. Compute the total rent income for 2018.
Betina Apparael Inc., operates a retail store and must determine the proper December 31, 2019, year-end accrual for the following expenses: The store lease calls for fixed rent of P1,000 per month, payable at the beginning of the month, and additional rent equal to 6% of net sales over P200,000 per calendar year, payable on January 31 of the following year. Net sales for 2019 are P800,000. Betina has personal property subject to a city property tax. The citys fiscal year runs from June 1 to June 30 and the tax, assessed at 3% of personal property on hand at April 30, is payable on June 30. Betina estimates that its personal property tax will amount to P6,000 for the citys fiscal year ending June 30, 2020.How much accrued expenses should Betina report in its Statement of Financial Position?