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Required: 30. What is the amount of sales from January 1, 2021 to April 30, 2021? 31. What is the amount of purchases from January 1, 2021 to April 30, 2021? 32. What is the amount of fire loss to be recognized on April 30, 2021?

Required: 30. What is the amount of sales from January 1, 2021 to April 30, 2021? 31. What is the amount of purchases from January 1, 2021 to April 30, 2021? 32. What is the amount of fire loss to be recognized on April 30, 2021?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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30. What is the amount of sales from January 1, 2021 to April 30, 2021?
31. What is the amount of purchases from January 1, 2021 to April 30, 2021?
32. What is the amount of fire loss to be recognized on April 30, 2021?

PROBLEM 30: On April 30, 2021, a fire damaged the office of Santo Domingo Company. The following balances were gathered from the general ledger on March 31, 2021: P 920,000 1,880,000 950,000 Accounts receivable Inventory, 1/1/2021 Accounts payable Sales 3,600,000 1,680,000 Purchases Additional information follows: A. An examination of the April bank statement and canceled checks revealed checks written during the period April 1 to 30 as follows: Accounts payable, 3/31 April merchandise shipments Expenses P 240,000 80,000 160,000 Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refunds from a vendor for merchandise returned in April. Customers acknowledged indebtedness of P1,040,000 at April 30. Customers owed another P60,000 that will never be recovered. Of the acknowledged indebtedness, P40,000 may prove uncollectible. C. Correspondence with suppliers revealed unrecorded obligations at April 30 of P340,000 for April merchandise shipment including, P100,000 for shipments in transit on that date. D. The average gross profit rate is 40%. Inventory with a cost of P260,000 was salvaged and sold for P140,000. The balance of the inventory was a total loss. В. Е. 30. What is the amount of sales from January 1, 2021 to April 30, 2021? 31. What is the amount of purchases from January 1, 2021 to April 30, 2021? 32. What is the amount of fire loss to be recognized on April 30, 2021?
Transcribed Image Text:PROBLEM 30: On April 30, 2021, a fire damaged the office of Santo Domingo Company. The following balances were gathered from the general ledger on March 31, 2021: P 920,000 1,880,000 950,000 Accounts receivable Inventory, 1/1/2021 Accounts payable Sales 3,600,000 1,680,000 Purchases Additional information follows: A. An examination of the April bank statement and canceled checks revealed checks written during the period April 1 to 30 as follows: Accounts payable, 3/31 April merchandise shipments Expenses P 240,000 80,000 160,000 Deposits during the same period amounted to P440,000 which consisted of collections from customers with the exception of P20,000 refunds from a vendor for merchandise returned in April. Customers acknowledged indebtedness of P1,040,000 at April 30. Customers owed another P60,000 that will never be recovered. Of the acknowledged indebtedness, P40,000 may prove uncollectible. C. Correspondence with suppliers revealed unrecorded obligations at April 30 of P340,000 for April merchandise shipment including, P100,000 for shipments in transit on that date. D. The average gross profit rate is 40%. Inventory with a cost of P260,000 was salvaged and sold for P140,000. The balance of the inventory was a total loss. В. Е. 30. What is the amount of sales from January 1, 2021 to April 30, 2021? 31. What is the amount of purchases from January 1, 2021 to April 30, 2021? 32. What is the amount of fire loss to be recognized on April 30, 2021?
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