During the year ended December 31, 2020, the accounting records have been maintained on a double entry basis but the cash basis of accounting has been employed. The trial balance prepared from these records on December Zan on January 1, 2019. 31. 2020 appeared as followe: Cash Sales Purchases Expenses Equipment Share capital Land Building Mortgage payable Retained earnings 1,500,000 4,000,000 2,000,000 1,500,000 200,000 2,000,000 800,000 1,500,000 900,000 600,000 7,500,000 7,500,000 The entity decided to convert the accounting records to the accrual basis on December 31, 2020. Additional information 1. Accounts receivable December 31, 2019 December 31, 2020 200,000 250,000 2. The sales of 2019 included P40,000 deposited by a customer for merchandise to be delivered in 2020. 3. Accounts payable December 31, 2019 December 31, 2020 350,000 280,000 4. Accrued expenses December 31, 2019 December 31, 2020 70,000 100,000 5. Merchandise inventory December 31, 2019 December 31, 2020 150,000 210,000

During the year ended December 31, 2020, the accounting records have been maintained on a double entry basis but the cash basis of accounting has been employed. The trial balance prepared from these records on December Zan on January 1, 2019. 31. 2020 appeared as followe: Cash Sales Purchases Expenses Equipment Share capital Land Building Mortgage payable Retained earnings 1,500,000 4,000,000 2,000,000 1,500,000 200,000 2,000,000 800,000 1,500,000 900,000 600,000 7,500,000 7,500,000 The entity decided to convert the accounting records to the accrual basis on December 31, 2020. Additional information 1. Accounts receivable December 31, 2019 December 31, 2020 200,000 250,000 2. The sales of 2019 included P40,000 deposited by a customer for merchandise to be delivered in 2020. 3. Accounts payable December 31, 2019 December 31, 2020 350,000 280,000 4. Accrued expenses December 31, 2019 December 31, 2020 70,000 100,000 5. Merchandise inventory December 31, 2019 December 31, 2020 150,000 210,000

Name: 31, 2020 appeared as follows:records have been maintained on a double
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Description: 31, 2020 appeared as follows:records have been maintained on a double entry basis butZamboanga Company began operations on January 1, 2019.The trial balance prepared from these records on DecemberDuring the year ended December 31, 2020, the accounti

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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