Betina Apparael Inc., operates a retail store and must determine the proper December 31, 2019, year-end accrual for the following expenses: The store lease calls for fixed rent of P1,000 per month, payable at the beginning of the month, and additional rent equal to 6% of net sales over P200,000 per calendar year, payable on January 31 of the following year. Net sales for 2019 are P800,000. Betina has personal property subject to a city property tax. The citys fiscal year runs from June 1 to June 30 and the tax, assessed at 3% of personal property on hand at April 30, is payable on June 30. Betina estimates that its personal property tax will amount to P6,000 for the citys fiscal year ending June 30, 2020. How much accrued expenses should Betina report in its Statement of Financial Position?
Betina Apparael Inc., operates a retail store and must determine the proper December 31, 2019, year-end accrual for the following expenses:
The store lease calls for fixed rent of P1,000 per month, payable at the beginning of the month, and additional rent equal to 6% of net sales over P200,000 per calendar year, payable on January 31 of the following year. Net sales for 2019 are P800,000.
Betina has personal property subject to a city property tax. The citys fiscal year runs from June 1 to June 30 and the tax, assessed at 3% of personal property on hand at April 30, is payable on June 30. Betina estimates that its personal property tax will amount to P6,000 for the citys fiscal year ending June 30, 2020.
How much accrued expenses should Betina report in its Statement of Financial Position?
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