Ramos Inc. must determine on December 31, 2020, year-end accruals for advertising and rent expense. A P50,000 advertising bill was received January 7, 2021, comprising cost of P35,000 for advertisement in December 2020 issues and P15,000 for advertisements in January 2021 issues of the newspaper. A store lease, effective December 16, 2019, calls for fixed rent of P120,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P6,000,000 per calendar year is payable on January 31 of the following year. Net sales for 2020 were P9,000,000. Question: How much are the accrued liabilities in the December 31, 2020 statement of financial position?
Ramos Inc. must determine on December 31, 2020, year-end accruals for advertising and rent expense. A P50,000 advertising bill was received January 7, 2021, comprising cost of P35,000 for advertisement in December 2020 issues and P15,000 for advertisements in January 2021 issues of the newspaper. A store lease, effective December 16, 2019, calls for fixed rent of P120,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P6,000,000 per calendar year is payable on January 31 of the following year. Net sales for 2020 were P9,000,000. Question: How much are the accrued liabilities in the December 31, 2020 statement of financial position?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ramos Inc. must determine on December 31, 2020, year-end accruals for advertising and rent expense. A P50,000 advertising bill was received January 7, 2021, comprising cost of P35,000 for advertisement in December 2020 issues and P15,000 for advertisements in January 2021 issues of the newspaper. A store lease, effective December 16, 2019, calls for fixed rent of P120,000 per month, payable one month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P6,000,000 per calendar year is payable on January 31 of the following year. Net sales for 2020 were P9,000,000.
Question: How much are the accrued liabilities in the December 31, 2020
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