Determine the audited balance of Depreciation expense under the accrual basis.
Transcribed Image Text:An analysis of incomplete records of Angel Corporation produced the following information applicable
Determine the audited balance of Depreciation expense under the accrual basis: *
Your answer
petermine the audited balance of Depreciation expense under the accrual basis: *
An analysis of incomplete records of Angel Corporation produced the following information appieabie
in 2019:
ACCOUNT INCREASES:
Cash
Accounts receivable
Accounts payable
Prepaid insurance
P4,200,000
1,400,000
400,000
200,000
ACCOUNT DECREASES:
Inventory
Equipment
Notes receivable
1,000,000
100,000
600,000
300,000
Accrued salaries payable
Summary of cash transactions were as follows:
RECEIPTS:
Cash sales
Collections of accounts receivable
Collections of notes receivable
Interest on notes receivable
Purchase returns and allowances
P3,000,000
30,000,000
2,400,000
200,000
500,000
DISBURSEMENTS:
Cash purchases
Payments of accounts payable
Sales returns and allowances
Insurance
Salaries
1,000,000
16,500,000
400,000
700,000
10,000,000
800,000
1,500,000
1,000,000
Equipment
Other expenses
Dividends
Additional information:
a.
Total purchase returns and allowances amounted to P800,000.
b. Total sales returns and allowances amounted to P1,200,000.
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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