You were able to extract the following information from the cash book of the business for the year 2021: Cash receipts: Cash sales 760,000 Interest collected on treasury bills 8,000 Collection of accounts receivable 2,656,000 Sale of delivery equipment' Matured treasury bills not rolled over 90,000 10,000 Total 3,524,000 Cash disbursements: Purchases of merchandise inventory 420,000 Interest paid on notes payable 50,000 Payment of accounts payable 1,880,000 Payment of notes payable Payment of operating expenses Payment for acquiring store fixtures? Withdrawals by SHAQ for personal use 80,000 940,000 150,000 24,000 Total 3,544,000 'On March 1, 2021, a delivery equipment with a cost of P60,000 was sold for P90,000. This was purchased when the business opened on April 1, 2020. 2On August 1, 2021, additional store fixtures were acquired at a cost of P150,000. Finally, you discovered that the existing delivery equipment and store fixtures have not been depreciated since they were acquired on April 1, 2020. The estimated useful life for all assets is 10 years, and the business uses the straight line method of depreciation.
You were able to extract the following information from the cash book of the business for the year 2021: Cash receipts: Cash sales 760,000 Interest collected on treasury bills 8,000 Collection of accounts receivable 2,656,000 Sale of delivery equipment' Matured treasury bills not rolled over 90,000 10,000 Total 3,524,000 Cash disbursements: Purchases of merchandise inventory 420,000 Interest paid on notes payable 50,000 Payment of accounts payable 1,880,000 Payment of notes payable Payment of operating expenses Payment for acquiring store fixtures? Withdrawals by SHAQ for personal use 80,000 940,000 150,000 24,000 Total 3,544,000 'On March 1, 2021, a delivery equipment with a cost of P60,000 was sold for P90,000. This was purchased when the business opened on April 1, 2020. 2On August 1, 2021, additional store fixtures were acquired at a cost of P150,000. Finally, you discovered that the existing delivery equipment and store fixtures have not been depreciated since they were acquired on April 1, 2020. The estimated useful life for all assets is 10 years, and the business uses the straight line method of depreciation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. How much is the gross profit for the year ended December 31, 2021?
2. How much is the gain on sale of delivery equipment for the year ended December 31, 2021?
3. How much is the operating expenses (EXCLUDING
4. How much is the depreciation expense for the year ended December 31, 2021?
5. How much is the net income before income tax for the year ended December 31, 2021?
Transcribed Image Text:You were able to extract the following information from the cash book of the business for
the year 2021:
Cash receipts:
Cash sales
760,000
Interest collected on treasury bills
8,000
Collection of accounts receivable
2,656,000
Sale of delivery equipment'
Matured treasury bills not rolled over
90,000
10,000
Total
3,524,000
Cash disbursements:
Purchases of merchandise inventory
420,000
Interest paid on notes payable
50,000
Payment of accounts payable
1,880,000
Payment of notes payable
Payment of operating expenses
Payment for acquiring store fixtures?
Withdrawals by SHAQ for personal use
80,000
940,000
150,000
24,000
Total
3,544,000
"On March 1, 2021, a delivery equipment with a cost of P60,000 was sold for P90,000.
This was purchased when the business opened on April 1, 2020.
2On August 1, 2021, additional store fixtures were acquired at a cost of P150,000.
Finally, you discovered that the existing delivery equipment and store fixtures have not
been depreciated since they were acquired on April 1, 2020. The estimated useful life for
all assets is 10 years, and the business uses the straight line method of depreciation.
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