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

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

FINANCIAL ACCOUNTING
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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The following data represents the summarized transactions of XYZ Trading for the year 20CY, its second year of operations. Cash sales P 750,000 Purchase return & discounts P 60,000 Sales on accounts 4,500,000 Salaries and wages paid 1,050,000 Store and office supplies paid Other operating expenses paid Collections from customers 4,300,000 300,000 Sales returns & discounts 80,000 100,000 450,000 3,000,000 2,700,000 60,000 600,000 50,000 10,000 Cash purchases Interest received Purchases on account Equipment purchased Interest paid Payment to creditors Rental collections 140,000 Accounts receivable written off Equipment 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/CY Notes & A/c payable, 12/31/CY Notes & A/c receivable, 12//31/PY Notes & A/c payable, 13/31/PY Accrued salaries payable Accrued Interest payable Unused Store & office supplies Inventory, 12/31/CY Accrued Interest receivable Р 320,000 P 540,000 210,000 300,000 110,000 10,000 75,000 600,000 15,000 500,000 20,000 Inventory, 12/13/PY Unearned rent income Required: 1. Compute the following under Cash and Accrual basis of accounting: e. Interest expense f. Salaries and wages g. Store and offices supplies expense h. Depreciation expense Total gross sales Total gross purchase а. b. C. Interest Income d. Rent Income Statement 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.
Transcribed Image Text:The following data represents the summarized transactions of XYZ Trading for the year 20CY, its second year of operations. Cash sales P 750,000 Purchase return & discounts P 60,000 Sales on accounts 4,500,000 Salaries and wages paid 1,050,000 Store and office supplies paid Other operating expenses paid Collections from customers 4,300,000 300,000 Sales returns & discounts 80,000 100,000 450,000 3,000,000 2,700,000 60,000 600,000 50,000 10,000 Cash purchases Interest received Purchases on account Equipment purchased Interest paid Payment to creditors Rental collections 140,000 Accounts receivable written off Equipment 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/CY Notes & A/c payable, 12/31/CY Notes & A/c receivable, 12//31/PY Notes & A/c payable, 13/31/PY Accrued salaries payable Accrued Interest payable Unused Store & office supplies Inventory, 12/31/CY Accrued Interest receivable Р 320,000 P 540,000 210,000 300,000 110,000 10,000 75,000 600,000 15,000 500,000 20,000 Inventory, 12/13/PY Unearned rent income Required: 1. Compute the following under Cash and Accrual basis of accounting: e. Interest expense f. Salaries and wages g. Store and offices supplies expense h. Depreciation expense Total gross sales Total gross purchase а. b. C. Interest Income d. Rent Income Statement 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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