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ABC prepares statements on the cash basis. The balance sheet as of December 31, 2021 and income statement for the year ended December 31, 2021are as follows: Cash Furniture and Equipment Total Assets Notes Payable Capital, January 1 Net Income, 2021 Withdrawals Total Liabilities and Owner's Equity P 1,800,000.00 Professional Fees December 31, 2021 December 31, 2020 2,200,000.00 Rent Expense P 4,000,000.00 1,600,000.00 P 1,000,000.00 Net Income 2,250,000.00 850,000.00 Supplies Expense P 4,000,000.00 Other Operating Expenses P 750,000 P 500,000 P 5,000,000.00 Unused office supplies balances are as follows -1,200,000.00 800,000.00 You also gathered the following information: • The furniture and fixture were acquired on July 1, 2020. The estimated life is 10 years. • The 12% notes payable is dated April 1, 2021 and matures in one year. Interest is payable on the date of maturity. Accrued rent expense on December 31, 2021 amounts to P 100,000. • Accounts Receivable balances are as follows: 750,000.00 P 2,250,000.00

ABC prepares statements on the cash basis. The balance sheet as of December 31, 2021 and income statement for the year ended December 31, 2021are as follows: Cash Furniture and Equipment Total Assets Notes Payable Capital, January 1 Net Income, 2021 Withdrawals Total Liabilities and Owner's Equity P 1,800,000.00 Professional Fees December 31, 2021 December 31, 2020 2,200,000.00 Rent Expense P 4,000,000.00 1,600,000.00 P 1,000,000.00 Net Income 2,250,000.00 850,000.00 Supplies Expense P 4,000,000.00 Other Operating Expenses P 750,000 P 500,000 P 5,000,000.00 Unused office supplies balances are as follows -1,200,000.00 800,000.00 You also gathered the following information: • The furniture and fixture were acquired on July 1, 2020. The estimated life is 10 years. • The 12% notes payable is dated April 1, 2021 and matures in one year. Interest is payable on the date of maturity. Accrued rent expense on December 31, 2021 amounts to P 100,000. • Accounts Receivable balances are as follows: 750,000.00 P 2,250,000.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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ABC prepares statements on the cash basis. The balance sheet as of December 31, 2021 and income statement for the year ended December 31, 2021are as follows: P 1,800,000.00 Professional Fees Cash Furniture and Equipment Total Assets Notes Payable Capital, January 1 Net Income, 2021 Withdrawals Total Liabilities and Owner's Equity 2,200,000.00 Rent Expense . P December 31, 2021 December 31, 2020 4,000,000.00 1,600,000.00 P 1,000,000.00 Net Income 2,250,000.00 850,000.00 You also gathered the following information: 4,000,000.00 Supplies Expense Other Operating Expenses P 750,000 P 500,000 P 5,000,000.00 Unused office supplies balances are as follows: -1,200,000.00 P • The furniture and fixture were acquired on July 1, 2020. The estimated life is 10 years. The 12% notes payable is dated April 1, 2021 and matures in one year. Interest is payable on the date of maturity. Accrued rent expense on December 31, 2021 amounts to P 100,000. • Accounts Receivable balances are as follows: 800,000.00 750,000.00 2,250,000.00
Transcribed Image Text:ABC prepares statements on the cash basis. The balance sheet as of December 31, 2021 and income statement for the year ended December 31, 2021are as follows: P 1,800,000.00 Professional Fees Cash Furniture and Equipment Total Assets Notes Payable Capital, January 1 Net Income, 2021 Withdrawals Total Liabilities and Owner's Equity 2,200,000.00 Rent Expense . P December 31, 2021 December 31, 2020 4,000,000.00 1,600,000.00 P 1,000,000.00 Net Income 2,250,000.00 850,000.00 You also gathered the following information: 4,000,000.00 Supplies Expense Other Operating Expenses P 750,000 P 500,000 P 5,000,000.00 Unused office supplies balances are as follows: -1,200,000.00 P • The furniture and fixture were acquired on July 1, 2020. The estimated life is 10 years. The 12% notes payable is dated April 1, 2021 and matures in one year. Interest is payable on the date of maturity. Accrued rent expense on December 31, 2021 amounts to P 100,000. • Accounts Receivable balances are as follows: 800,000.00 750,000.00 2,250,000.00
December 31, 2021 December 31, 2020 How much is the accrual basis balance of professional fees for the year ended December 31, 2021? Group of answer choices O 4,750,000 O 5,750,000 5,000,000 O P 250,000 P 300,000 5,250,000
Transcribed Image Text:December 31, 2021 December 31, 2020 How much is the accrual basis balance of professional fees for the year ended December 31, 2021? Group of answer choices O 4,750,000 O 5,750,000 5,000,000 O P 250,000 P 300,000 5,250,000
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