Astercor, Inc. reported the following during the year. • P 400,000 proceeds of life insurance of an officer where Antercor is the beneficiary (P600,000 still uncollected.) P800,000 interest income, exclusive of P200,000 uncollected and accrued interest P300,000 increase in value of investment in stocks 8. Compute the gross income under cash basis.

Astercor, Inc. reported the following during the year. • P 400,000 proceeds of life insurance of an officer where Antercor is the beneficiary (P600,000 still uncollected.) P800,000 interest income, exclusive of P200,000 uncollected and accrued interest P300,000 increase in value of investment in stocks 8. Compute the gross income under cash basis.

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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Question

Astercor, Inc. reported the following during the year.
• P 400,000 proceeds of life insurance of an officer where Antercor is the beneficiary
(P600,000 still uncollected.)
• P800,000 interest income, exclusive of P200,000 uncollected and accrued interest
• P300,000 increase in value of investment in stocks
8. Compute the gross income under cash basis.
а. Р 800,000
b. P
ОБ.Р1,000,000
c. P 1,200,000
O d. P1,400,000

9. Compute the gross income
under accrual basis. *
О а. Р 800,000
O b. P 1,000,000
О с. Р 1,200,000
O d. P1,400,000

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