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ments of S Co. The following data were provid ntant: Receipts: Collection on sale on account Cash sales Proceeds of a note payable dated October 1, 2019 and due October 1, 2021, discounted at 18% Disbursements: Purchase of land and building on April 1, 2019 Full payment of furniture and fixtures purchased on July 1, 2019 On accounts payable and administrative expenses Selling expenses December 31, 2019 200,000 220,000 180,000 40,000 740,000 100,000 30,000 0400,000 Of the sales on account, P10,000 was returned because of poor quality e was a purchase return of P8,000. The following data are also available: ounts Receivable chandise inventory ounts payable rued rent expenses ? To 518,000 200,000 a. Gross sales on account b. Net purchases c. Payment of accounts payable d. Payment of administrative expenses P Total selling and administrative expenses December 31, 2 150,000 190,000 230,000 40,000 Of the total purchase price of the Land and Building, 40% is allocated to . Annual depreciation is 5% on the building and 10% on the furniture ures. Selling expenses of P200,000 are 40% of gross profit. The depreciation expe to be part of the administrative expense amount. Depreciation expense is 20 = total administrative expenses. There are no unpaid selling and administra penses as of December 31. quired: 1. Based on the above data and your audit, determine the balance of the follo- as of December 31, 2019.

ments of S Co. The following data were provid ntant: Receipts: Collection on sale on account Cash sales Proceeds of a note payable dated October 1, 2019 and due October 1, 2021, discounted at 18% Disbursements: Purchase of land and building on April 1, 2019 Full payment of furniture and fixtures purchased on July 1, 2019 On accounts payable and administrative expenses Selling expenses December 31, 2019 200,000 220,000 180,000 40,000 740,000 100,000 30,000 0400,000 Of the sales on account, P10,000 was returned because of poor quality e was a purchase return of P8,000. The following data are also available: ounts Receivable chandise inventory ounts payable rued rent expenses ? To 518,000 200,000 a. Gross sales on account b. Net purchases c. Payment of accounts payable d. Payment of administrative expenses P Total selling and administrative expenses December 31, 2 150,000 190,000 230,000 40,000 Of the total purchase price of the Land and Building, 40% is allocated to . Annual depreciation is 5% on the building and 10% on the furniture ures. Selling expenses of P200,000 are 40% of gross profit. The depreciation expe to be part of the administrative expense amount. Depreciation expense is 20 = total administrative expenses. There are no unpaid selling and administra penses as of December 31. quired: 1. Based on the above data and your audit, determine the balance of the follo- as of December 31, 2019.

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section: Chapter Questions
Problem 6AP
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You have been engaged in your second annual examination of the financial statements of S Co. The following data were provided to you by the company accountant: Cash Receipts: Collection on sale on account Cash sales 740,000 100,000 Proceeds of a note payable dated October 1, 2019 and due October 1, 2021, discounted at 18% 30,000 Cash Disbursements: 400,000 Purchase of land and building on April 1, 2019 Full payment of furniture and fixtures purchased on July 1, 2019 On accounts payable and administrative expenses Selling expenses To 518,000 200,000 Of the sales on account, P10,000 was returned because of poor quality and there was a purchase return of P8,000. The following data are also available: December 31, 2018 Accounts Receivable Merchandise inventory Accounts payable Accrued rent expenses December 31, 2019 200,000 220,000 180,000 40,000 150,000 190,000 230,000 40,000 Of the total purchase price of the Land and Building, 40% is allocated to the land. Annual depreciation is 5% on the building and 10% on the furniture and fixtures. Selling expenses of P200,000 are 40% of gross profit. The depreciation expenses are to be part of the administrative expense amount. Depreciation expense is 20% of the total administrative expenses. There are no unpaid selling and administrative expenses as of December 31. Required: 1. Based on the above data and your audit, determine the balance of the following as of December 31, 2019. a. Gross sales on accoynt b. Net purchases c. Payment of accounts payable d. Payment of administrative expenses e. Total selling and administrative expenses
Transcribed Image Text:You have been engaged in your second annual examination of the financial statements of S Co. The following data were provided to you by the company accountant: Cash Receipts: Collection on sale on account Cash sales 740,000 100,000 Proceeds of a note payable dated October 1, 2019 and due October 1, 2021, discounted at 18% 30,000 Cash Disbursements: 400,000 Purchase of land and building on April 1, 2019 Full payment of furniture and fixtures purchased on July 1, 2019 On accounts payable and administrative expenses Selling expenses To 518,000 200,000 Of the sales on account, P10,000 was returned because of poor quality and there was a purchase return of P8,000. The following data are also available: December 31, 2018 Accounts Receivable Merchandise inventory Accounts payable Accrued rent expenses December 31, 2019 200,000 220,000 180,000 40,000 150,000 190,000 230,000 40,000 Of the total purchase price of the Land and Building, 40% is allocated to the land. Annual depreciation is 5% on the building and 10% on the furniture and fixtures. Selling expenses of P200,000 are 40% of gross profit. The depreciation expenses are to be part of the administrative expense amount. Depreciation expense is 20% of the total administrative expenses. There are no unpaid selling and administrative expenses as of December 31. Required: 1. Based on the above data and your audit, determine the balance of the following as of December 31, 2019. a. Gross sales on accoynt b. Net purchases c. Payment of accounts payable d. Payment of administrative expenses e. Total selling and administrative expenses
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