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
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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