An entity had the following transactions during the quarter ended March 31: Advertising costs of P2 million were incurred on March 1. Loss of P1 million from typhoon damage. Payment of P400,000 fire insurance premium for the calendar year. Staff bonuses are paid at year-end based on sales. Staff bonuses are expected to be around P20 million for the year; of that sum, P3 million would relate to the period ending March 31. The total amount to be recognized in the entity’s profit or loss for the period ended March 31 is Group of answer choices
An entity had the following transactions during the quarter ended March 31: Advertising costs of P2 million were incurred on March 1. Loss of P1 million from typhoon damage. Payment of P400,000 fire insurance premium for the calendar year. Staff bonuses are paid at year-end based on sales. Staff bonuses are expected to be around P20 million for the year; of that sum, P3 million would relate to the period ending March 31. The total amount to be recognized in the entity’s profit or loss for the period ended March 31 is Group of answer choices
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An entity had the following transactions during the quarter ended March 31:
- Advertising costs of P2 million were incurred on March 1.
- Loss of P1 million from typhoon damage.
- Payment of P400,000 fire insurance premium for the calendar year.
- Staff bonuses are paid at year-end based on sales. Staff bonuses are expected to be around P20 million for the year; of that sum, P3 million would relate to the period ending March 31.
The total amount to be recognized in the entity’s profit or loss for the period ended March 31 is
Group of answer choices
P8.4 million
P8.1 million
P6.4 million
P6.1 million
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