7. RM Company provided the following data for the current year:Cash salesSales on accountP2,500,000850,0001,700,000400,000750,000250,000300,000150,000200,000Inventory - Jan 1Inventory - Dec 31Accrued expenses - Dec 31Prepaid expense - Dec 31Equipment- Dec 31Interest receivedInterest receivable - Jan 1Interest receivable - Dec 31P 500,000600,00020,00030,0001,000,00040,00010,00020,000Cash purchasesCredit purchasesExpenses paidAccounts receivable- Jan 1Accounts receivable- Dec 31Account payable - Jan 1Account payable - Dec 31On July 1 of the current year, an equipment was acquired for P200,000. The terms are P50,000down and the balance to be paid after one year. The useful life is 10 years with no residual value.What is the net income under cash & accrual basis?

Trading and Profit and loss a/c Particulars Amount Particulars Amount To Opening Inventory…

7. RM Company provided the following data for the current year: Cash sales Sales on account Cash purchases Credit purchases Expenses paid Accounts receivable- Jan 1 Accounts receivable- Dec 31 P2,500,000 850,000 1,700,000 400,000 750,000 250,000 300,000 150,000 200,000 Inventory - Jan 1 Inventory - Dec 31 Accrued expenses - Dec 31 Prepaid expense - Dec 31 Equipment- Dec 31 Interest received Interest receivable - Jan 1 Interest receivable - Dec 31 P 500,000 600,000 20,000 30,000 1,000,000 40,000 10,000 20,000 Account payable - Jan 1 Account payable - Dec 31 On July 1 of the current year, an equipment was acquired for P200,000. The terms are P50,000 down and the balance to be paid after one year. The useful life is 10 years with no residual value. What is the net income under cash & accrual basis?

7. RM Company provided the following data for the current year: Cash sales Sales on account Cash purchases Credit purchases Expenses paid Accounts receivable- Jan 1 Accounts receivable- Dec 31 P2,500,000 850,000 1,700,000 400,000 750,000 250,000 300,000 150,000 200,000 Inventory - Jan 1 Inventory - Dec 31 Accrued expenses - Dec 31 Prepaid expense - Dec 31 Equipment- Dec 31 Interest received Interest receivable - Jan 1 Interest receivable - Dec 31 P 500,000 600,000 20,000 30,000 1,000,000 40,000 10,000 20,000 Account payable - Jan 1 Account payable - Dec 31 On July 1 of the current year, an equipment was acquired for P200,000. The terms are P50,000 down and the balance to be paid after one year. The useful life is 10 years with no residual value. What is the net income under cash & accrual basis?

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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