The following data represents the summarized transactions of XYZ Trading for the year 20CY, its second year of operations.
The following data represents the summarized transactions of XYZ Trading for the year 20CY, its second year of operations.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 14BEA: Last year, Nikkola Company had net sales of 2.299.500,000 and cost of goods sold of 1,755,000,000....
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
Transcribed Image Text:The following data represents the summarized transactions of XYZ Trading for the year 20CY,
its second year of operations.
Cash sales
P 750,000
Purchase return & discounts
P 60,000
Sales on accounts
4,500,000
Salaries and wages paid
1,050,000
Store and office supplies paid
Other operating expenses paid
Collections from customers
4,300,000
300,000
Sales returns & discounts
80,000
100,000
450,000
3,000,000
2,700,000
60,000
600,000
50,000
10,000
Cash purchases
Interest received
Purchases on account
Equipment purchased
Interest paid
Payment to creditors
Rental collections
140,000
Accounts receivable written off
Equipment was acquired at the beginning of its first year with a 10-year useful life.
Additional Information at December 31, 20CY:
Notes & A/c receivable, 12/31/CY
Notes & A/c payable, 12/31/CY
Notes & A/c receivable, 12//31/PY
Notes & A/c payable, 13/31/PY
Accrued salaries payable
Accrued Interest payable
Unused Store & office supplies
Inventory, 12/31/CY
Accrued Interest receivable
Р 320,000
P 540,000
210,000
300,000
110,000
10,000
75,000
600,000
15,000
500,000
20,000
Inventory, 12/13/PY
Unearned rent income
Required:
1.
Compute the following under Cash and Accrual basis of accounting:
e. Interest expense
f. Salaries and wages
g. Store and offices supplies expense
h. Depreciation expense
Total gross sales
Total gross purchase
а.
b.
C.
Interest Income
d.
Rent Income
Statement of Comprehensive Income for the year ended December 31,
20CY under Cash basis of accounting.
3.
Convert the Cash basis Income statement to Accrual basis of accounting.
4. Adjusting entries necessary to convert to Accrual basis.
2.
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