Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent expenses. A P50,000 advertising bill was received on January7, 2021, comprising of P37,500 for advertisements in December 2020 andP12,500 for advertisements in January 2021 issued of the newspaper. A store lease effective December 1, 2020 calls for a fixed rent of P120,000 permonth payable at the beginning of each month. In addition, rent equal to 5% ofnet sales over P3,000,000 per month is payable on the 20th day of the followingmonth. Net sales for December were P5,500,000.In its December 31, 2020 statement of financial position, Apachi should reportaccrued liabilities of?
Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent expenses. A P50,000 advertising bill was received on January7, 2021, comprising of P37,500 for advertisements in December 2020 andP12,500 for advertisements in January 2021 issued of the newspaper. A store lease effective December 1, 2020 calls for a fixed rent of P120,000 permonth payable at the beginning of each month. In addition, rent equal to 5% ofnet sales over P3,000,000 per month is payable on the 20th day of the followingmonth. Net sales for December were P5,500,000.In its December 31, 2020 statement of financial position, Apachi should reportaccrued liabilities of?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent expenses. A P50,000 advertising bill was received on January7, 2021, comprising of P37,500 for advertisements in December 2020 andP12,500 for advertisements in January 2021 issued of the newspaper. A store lease effective December 1, 2020 calls for a fixed rent of P120,000 permonth payable at the beginning of each month. In addition, rent equal to 5% ofnet sales over P3,000,000 per month is payable on the 20th day of the followingmonth. Net sales for December were P5,500,000.In its December 31, 2020 statement of financial position, Apachi should reportaccrued liabilities of?
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