Selected information from the statement of financial position of SHY Company at November 30 and December 31, 2021 is presented below. The company uses the perpetual inventory system and all sales and purchases were made on credit. How much is the gross purchases for the month of December? November 30, 2021December 31, 2021Accounts receivablePrepaid insuranceMerchandise inventoryAccounts payable|Wages payable20,0006,00010,00015,00014,00012,00024,00030,00010,0006,000The following cash flow information during the month of December is also available:• Cash collected from credit customers = P160,0003;Cash paid for insurance = P10,000Cash paid to suppliers of inventory = P120,000;Cash paid to employees for wages = P20,000

Purchases means where the goods has been purchased for the resale purpose. Gross purchases means…

Answered: Selected information from the statement…

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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Selected information from the statement of financial position of SHY Company at November 30 and December 31, 2021 is presented below. The company uses the perpetual inventory system and all sales and purchases were made on credit.

How much is the gross purchases for the month of December?

November 30, 2021
December 31, 2021
Accounts receivable
Prepaid insurance
Merchandise inventory
Accounts payable
|Wages payable
20,000
6,000
10,000
15,000
14,000
12,000
24,000
30,000
10,000
6,000
The following cash flow information during the month of December is also available:
• Cash collected from credit customers = P160,0003;
Cash paid for insurance = P10,000
Cash paid to suppliers of inventory = P120,000;
Cash paid to employees for wages = P20,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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