You were able to gather the following in connection with our audit of the TMC Corporation for the year ended December 31, 2018. Dec. 31, 2017 Dec 31, 2018 Accounts Receivable 6,400,000 4,000,000 Unpaid Merchandise invoices ? 2,621,000 Accrued Wages 85,000 125,000 Advertising supplies inventory 35,000 75,000 Accrued advertising expense 14,250 40,000 Prepaid Insurance 25,000 0 Unexpired insurance 0 41,000 During the year: Amount collected from customers, P10,000,000 Wages paid, P3,050,000 Advertising paid which includes, P250,000 Insurance premium paid, P125,000 Total payments to suppliers of merchandise, P13,618,000 Total payments to suppliers of merchandise of prior years, P4,632,000 Requirements: Compute for the Accrual advertising expense in 2018
You were able to gather the following in connection with our audit of the TMC Corporation for the year ended December 31, 2018. Dec. 31, 2017 Dec 31, 2018 Accounts Receivable 6,400,000 4,000,000 Unpaid Merchandise invoices ? 2,621,000 Accrued Wages 85,000 125,000 Advertising supplies inventory 35,000 75,000 Accrued advertising expense 14,250 40,000 Prepaid Insurance 25,000 0 Unexpired insurance 0 41,000 During the year: Amount collected from customers, P10,000,000 Wages paid, P3,050,000 Advertising paid which includes, P250,000 Insurance premium paid, P125,000 Total payments to suppliers of merchandise, P13,618,000 Total payments to suppliers of merchandise of prior years, P4,632,000 Requirements: Compute for the Accrual advertising expense in 2018
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
You were able to gather the following in connection with our audit of the TMC Corporation for the year ended December 31, 2018.
|
|
Dec. 31, 2017 |
Dec 31, 2018 |
|
Accounts Receivable |
6,400,000 |
4,000,000 |
|
Unpaid Merchandise invoices |
? |
2,621,000 |
|
Accrued Wages |
85,000 |
125,000 |
|
Advertising supplies inventory |
35,000 |
75,000 |
|
Accrued advertising expense |
14,250 |
40,000 |
|
Prepaid Insurance |
25,000 |
0 |
|
Unexpired insurance |
0 |
41,000 |
During the year:
- Amount collected from customers, P10,000,000
- Wages paid, P3,050,000 Advertising paid which includes, P250,000
- Insurance premium paid, P125,000
- Total payments to suppliers of merchandise, P13,618,000
- Total payments to suppliers of merchandise of prior years, P4,632,000
Requirements:
Compute for the Accrual advertising expense in 2018
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