THIRTYFIRST Company must determine the December 31, 2021 year end accruals for advertising and rent expenses. A P500 advertising received January 7, 2022, comprising costs of P375 for advertisements in December 2021 issues, and P125 for advertisements in January 2022 issues of the newspaper. A store lease, effective December 16, 2020, calls for fixed rent of P1,200 per month, payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P300,00 per calendar year is payable on January 31 of the following year. Net sales for 2021 were P550,00. In the December 31, 2021 balance sheet, THIRTYFIRTS Company should report accrued liabilities. 13,475 13,000 12,875 13,100
THIRTYFIRST Company must determine the December 31, 2021 year end accruals for advertising and rent expenses. A P500 advertising received January 7, 2022, comprising costs of P375 for advertisements in December 2021 issues, and P125 for advertisements in January 2022 issues of the newspaper. A store lease, effective December 16, 2020, calls for fixed rent of P1,200 per month, payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P300,00 per calendar year is payable on January 31 of the following year. Net sales for 2021 were P550,00. In the December 31, 2021 balance sheet, THIRTYFIRTS Company should report accrued liabilities. 13,475 13,000 12,875 13,100
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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THIRTYFIRST Company must determine the December 31, 2021 year end accruals for advertising and rent expenses. A P500 advertising received January 7, 2022, comprising costs of P375 for advertisements in December 2021 issues, and P125 for advertisements in January 2022 issues of the newspaper.
A store lease, effective December 16, 2020, calls for fixed rent of P1,200 per month, payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P300,00 per calendar year is payable on January 31 of the following year. Net sales for 2021 were P550,00.
In the December 31, 2021 balance sheet, THIRTYFIRTS Company should report accrued liabilities.
13,475
13,000
12,875
13,100
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