The following items were among those that were reported on Cotabato Company’s income statement: Legal and audit fees P2,000,000 Rent for office space 6,000,000 Interest on acceptances payable 1,000,000 Loss on abandoned equipment 500,000 Insurance 200,000 The office space is used equally by the sales and accounting departments. What amount should be classified as general and administrative expenses?
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The following items were among those that were reported on Cotabato Company’s income statement:
|
Legal and audit fees |
P2,000,000 |
|
Rent for office space |
6,000,000 |
|
Interest on acceptances payable |
1,000,000 |
|
Loss on abandoned equipment |
500,000 |
|
Insurance |
200,000 |
The office space is used equally by the sales and accounting departments. What amount should be classified as general and administrative expenses?
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- [The following information applies to the questions displayed below.] The following data were provided by Mystery Incorporated for the year ended December 31: Cost of Goods Sold $ 156,000 Income Tax Expense Net Sales 15, 120 253,890 18,100 36,600 Office Expense Salaries and Wages Expense Required: 1. Prepare a multistep income statement for external reporting purposes. MYSTERY INCORPORATED Income Statement ---PlantTita Company reported the following data for the current year: Legal and audit fees P10,000Rent for office space equally shared by sales and accounting 150,000Transportation out 20,000Officer’s salaries 80,000Insurance 5,000Sales representative salaries 80,000Transportation in 15,000Doubtful accounts 2,000Loss on sale of trading investments 10,000Advertising expenses 50,000Office supplies used 8,000 16. What amount should be classified as administrative expenses?a. P190,000b. P180,000c. P200,000d. P195,000 17. What amount should be classified as distribution expenses?a. P300,000b. P235,000c. P220,000d. P225,000An entity reported the following data for the current year: Legal and audit fees 1,700,000Rent for office space 2,400,000Advertising 500,000Interest on inventory loan 2,100,000Loss on abandoned data processing equipment 350,000Freight in 1,750,000Freight out 1,600,000Officers` Salaries 1,500,000Insurance 850,000Sales representative salaries 2,150,000Research and development expense 1,000,000The office space is used equally by the sales and accounting departments. Question 1: What amount should be classified as general and administrative expenses?a. 5,250,000 c. 5,600,000b. 6,450,000 d. 6,250,000Question 2: What amount should be reported as selling expense?a. 5,450,000 c. 6,300,000b. 4,250,000 d. 6,450,000
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