The following data represents the summarized transactions of XYZ Trading for the year 20CY, its second year of operations. P 750,000 P 60,000 1,050,000 Cash sales Purchase return & discounts Sales on accounts Collections from customers Sales returns & discounts Cash purchases Salaries and wages paid Store and office supplies paid Other operating expenses paid 4,500,000 4,300,000 300,000 80,000 100,000 450,000 Interest received 60,000 Equipment purchased Interest paid Purchases on account 3,000,000 600,000 Payment to creditors 2,700,000 50,000 Rental collections 140,000 Accounts receivable written off 10,000 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 P 320,000 P 540,000 210,000 300,000 110,000 10,000 75,000 600,000 15,000 Inventory, 12/13/PY Unearned rent income 500,000 20,000 Required: 1. Compute the following under Cash and Accrual basis of accounting: a. Total gross sales b. Total gross purchase C. Interest Income e. Interest expense 1. Salaries and wages g. Store and offices supplies expense h. Depreciation expense d. Rent Income 2. 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.
The following data represents the summarized transactions of XYZ Trading for the year 20CY, its second year of operations. P 750,000 P 60,000 1,050,000 Cash sales Purchase return & discounts Sales on accounts Collections from customers Sales returns & discounts Cash purchases Salaries and wages paid Store and office supplies paid Other operating expenses paid 4,500,000 4,300,000 300,000 80,000 100,000 450,000 Interest received 60,000 Equipment purchased Interest paid Purchases on account 3,000,000 600,000 Payment to creditors 2,700,000 50,000 Rental collections 140,000 Accounts receivable written off 10,000 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 P 320,000 P 540,000 210,000 300,000 110,000 10,000 75,000 600,000 15,000 Inventory, 12/13/PY Unearned rent income 500,000 20,000 Required: 1. Compute the following under Cash and Accrual basis of accounting: a. Total gross sales b. Total gross purchase C. Interest Income e. Interest expense 1. Salaries and wages g. Store and offices supplies expense h. Depreciation expense d. Rent Income 2. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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