The following data represents the summarized transactions of XYZ Trading for the year 20CY,its second year of operations.Cash salesP 750,000Purchase return & discountsP 60,000Sales on accounts4,500,000Salaries and wages paid1,050,000Store and office supplies paidOther operating expenses paidCollections from customers4,300,000300,000Sales returns & discounts80,000100,000450,0003,000,0002,700,00060,000600,00050,00010,000Cash purchasesInterest receivedPurchases on accountEquipment purchasedInterest paidPayment to creditorsRental collections140,000Accounts receivable written offEquipment was acquired at the beginning of its first year with a 10-year useful life.Additional Information at December 31, 20CY:Notes & A/c receivable, 12/31/CYNotes & A/c payable, 12/31/CYNotes & A/c receivable, 12//31/PYNotes & A/c payable, 13/31/PYAccrued salaries payableAccrued Interest payableUnused Store & office suppliesInventory, 12/31/CYAccrued Interest receivableР 320,000P 540,000210,000300,000110,00010,00075,000600,00015,000500,00020,000Inventory, 12/13/PYUnearned rent incomeRequired:1.Compute the following under Cash and Accrual basis of accounting:e. Interest expensef. Salaries and wagesg. Store and offices supplies expenseh. Depreciation expenseTotal gross salesTotal gross purchaseа.b.C.Interest Incomed.Rent IncomeStatement of Comprehensive Income for the year ended December 31,20CY under Cash basis of accounting.3.Convert the Cash basis Income statement to Accrual basis of accounting.4. Adjusting entries necessary to convert to Accrual basis.2.

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Answered: a. Total gross sales b. Total gross…

Business

Accounting

a. Total gross sales b. Total gross purchase c. Interest Income

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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