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What is the amount of sales under cash basis?  What is the amount of purchases under cash basis? What is the cost of goods sold under cash basis?

What is the amount of sales under cash basis?  What is the amount of purchases under cash basis? What is the cost of goods sold under cash basis?

FINANCIAL ACCOUNTING
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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What is the amount of sales under cash basis? 

What is the amount of purchases under cash basis?

What is the cost of goods sold under cash basis?

What is the amount of depreciation under cash basis?

What is the net income under cash basis?

Dragon Company provided the following data for the current year: Cash sales 2,500,000 Sales on account 850,000 Cash purchases Credit purchases 1,700,000 400,000 750,000 Expenses paid Accounts receivable - January 1 250,000 Accounts receivable – December 31 300,000 Accounts payable – January 1 150,000 Accounts payable – December 31 Inventory - January 1 Inventory - December 31 Accrued expenses – December 31 Prepaid expenses – December 31 Equipment – December 31 200,000 500,000 600,000 20,000 30,000 1,000,000 40,000 10,000 Interest received Interest receivable – January 1 Interest receivable – December 31 20,000 On July 1 of the current year, an equipment was acquired for P200,000. The terms are P50,000 down and the balance to be paid after one year. The useful life of equipment is 10 years with no residual value.
Transcribed Image Text:Dragon Company provided the following data for the current year: Cash sales 2,500,000 Sales on account 850,000 Cash purchases Credit purchases 1,700,000 400,000 750,000 Expenses paid Accounts receivable - January 1 250,000 Accounts receivable – December 31 300,000 Accounts payable – January 1 150,000 Accounts payable – December 31 Inventory - January 1 Inventory - December 31 Accrued expenses – December 31 Prepaid expenses – December 31 Equipment – December 31 200,000 500,000 600,000 20,000 30,000 1,000,000 40,000 10,000 Interest received Interest receivable – January 1 Interest receivable – December 31 20,000 On July 1 of the current year, an equipment was acquired for P200,000. The terms are P50,000 down and the balance to be paid after one year. The useful life of equipment is 10 years with no residual value.
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