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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

36

 

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
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Market Efficiency
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education