compute the adjusted balances of the following accounts: 5. Total operating expenses6. Gain or loss on sale of land7. Gain or loss on sale of warehouse equipment8. Net income 5. The following information was prepared by the bookkeeper during the audit of the financial statements ofTANGA Corporation for the calendar year ended December 31, 2020:Cash receipts:Collection of accounts receivableLess: discounts takenCash sales of merchandiseSale of warehouse equipmentInsurance proceed from boiler explosionSale of land on November 1Cash disbursements:Payment to trade creditorsGeneral and administrative expensesCash purchases of merchandiseRepairs made on warranty contractsPurchased of land on May 1Purchase on November 10 of 100 shares of Wood Company stock756,5006,500750,00080,0006,00021,00010,000603,000102,00060,0003,2008,00016,000 Supplementary information:1. The following account balances were taken from the general ledger:December 31, 2019Accounts receivableInventoryPrepaid expensesAccrued expensesAccounts payable62,00093,0004,8003,500191,000December 31, 202073,00095,0004,2004,500205,0002.Depreciation for 2020 was P42,000.3. The warehouse equipment sold during 2020 was acquired in 2015 at a cost of P16,500. The double decliningmethod of depreciation was used and accumulated charges were P8,000 at the date of sale. If the straightline method had been used the accumulated depreciation would have been P5,000.4. An explosion occurred on January 15, 2020 in which a boiler, not the structural component of a building,was completely destroyed. It was purchased in January 2013 at a cost of P24,000; depreciation wasrecorded by the straight line method and P10,000 had accumulated at the date of explosion.5. Land was purchased on May 1, 2020 and was used as a storage facility. It was found to be unsuitable forthis purpose and was sold on November 1, 2020.

Name: compute the adjusted balances of the following accounts: 5. Total oper
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Description: compute the adjusted balances of the following accounts: 5. Total operating expenses6. Gain or loss on sale of land7. Gain or loss on sale of warehouse equipment8. Net income 5. The following information was prepared by the bookkeeper during the audi

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compute the adjusted balances of the following accounts: 5. Total operating expenses 6. Gain or loss on sale of land 7. Gain or loss on sale of warehouse equipment

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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