The pre-collection/advanced collection is P360,000. This is applicable for a six-month rental period starting November 1, 2020. The financial statements to be prepared are dated December 31, 2020. How much is the unearned income to be reported in the financial statements?

The pre-collection/advanced collection is P360,000. This is applicable for a six-month rental period starting November 1, 2020. The financial statements to be prepared are dated December 31, 2020. How much is the unearned income to be reported in the financial statements?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: What amount of expense, if any, should be reflected in Coco’s quarterly statement of comprehensive…

A: Coco Inc., estimated a total bonus of 30,000 for the year ended July 31, 2019. That is monthly…

Q: Inn Company leased office premises to Ava, Inc. for a two-year term beginning March 1, 2021 up to…

A: First year rent = P20,000 x 12 months = P240,000 Second year rent = P20,000 x…

Q: Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent…

A: The accrued liability refers to an expense incurred by a business but not yet paid. These are costs…

Q: Bebe Co. purchased equipment with an invoice price of 1,680,000 on March 5, 2021. How much would be…

A: Under the Tax Code, the amount of input tax on imported or purchased capital goods which will be…

Q: During 2018, the entity billed the customer equivalent to 30% of the contract price. During 2019,…

A: Gross profit realized for 2019 is calculated in the following table: Contract price 1,000,000…

Q: The following sales and purchases are expected over the Five-month period from November 2019 to…

A: Cash budget of the business shows expected cash receipts and cash payments for the future period of…

Q: On December, 2021 the company borrows $20,000 from Mega Bank Ltd. at 6% per annum to buy a delivery…

A: In accounting adjusting entry refers to that journal entry that are recorded at the end of the…

Q: M&M Bank granted a loan to a borrower on April 1, 2020. The interest on the loan is 10% payable…

A: The carrying value of the loan is calculated by discounting the future cash flows from the loan at…

Q: Pharoah Company, which began operations at the beginning of 2023, produces various products on a…

A: First of all we have to understand that certain deductions in Income tax is not allowed although we…

Q: sparkling water inc. had a total sales of 3,000,000 for 2019. this amount includes 150,000 relating…

A: Net sales = total sales - sales of extended service-type warranty = 3000000 - 150000 = 2,850,000

Q: Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable…

A: Value Added Tax(VAT)-:It is a value-added tax, understood in a few countries as a product and…

Q: Amatek Industries Pty Ltd. received annual interest in advance in the amount of $216 on 31/8/2020.…

A: The journal entries are prepared to keep the record of day to day transaction of the business.

Q: On September 1, Kennedy Company loaned $112,000, at 9% annual interest, to a customer. Interest and…

A: The question is based on the concept of Financial Accounting.

Q: ABC Company is preparing its financial statement for the year ended December 31, 2020. Accounts…

A: Note: In question it is written that accounts payable balance on 31st December 2019 but data is…

Q: 18. Prepare the initial entries to record the given loan. 19. What are the accounts involved in the…

A: Unearned revenue: It is the amount received from a client for a service or product which is yet…

Q: On January 1, 2021, Umbrella Insurance Company has collected $24,000 for multiple two-year insurance…

A: Insurance premium for a month = Total premium collected / Period of insurance = $24,000 / 24 months…

Q: Ava Company leased office premises to Olivia, Inc. for a two-year term beginning March 1, 2021 up to…

A: Companies sometimes do not own the property but get the same property on lease for a definite period…

Q: general journal adjusting entry on December 31, 2021

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: Wildhorse Co. issued a five-year interest-bearing note payable for $324000 on January 1, 2019. Each…

A: Balance sheet is the financial statement which involves the total debt, liabilities, assets and…

Q: In 2019, Rouchele Co. borrowed $200,000 on a 5% long-term note payable. In each of the following…

A: Long-term debt is a liability to be repaid after one accounting year. It is also called non-current…

Q: On April 1, 2019 SOMETHING Company began offering a new product for sale under a one-year warranty.…

A: A liability account that reports the estimated amount that a company will have to spend to repairs…

Q: Entei Bank granted a P5,000,000 loan to Raikou Company on January 1, 2020. The annual interest on…

A: Here in this question we are required to find out the total interest income to be presented on the…

Q: In January 2019, Dumdum Inc. paid property taxes on its factory building for the calendar year 2019…

A: Here in this question, we are require to determine how much expense need to reflect in each interim…

Q: XYZ Co.'s accumulated deposit liability for the lookback period of July 1, 2020, to June 30, 2021,…

A: The payroll tax deposit schedule refers to the timetable or frequency with which an employer is…

Q: TDC Company is preparing its financial statement for the year ended December 31, 2020. Accounts…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: On March 31, 2020, the CHICAGO BULLS Corporation issued a P3, 000, 000 12% promissory note for…

A: Interest expense from January 1 2021 to March 31 2021 = Amount payable x rate of interest x no. of…

Q: On April 30, 2019 the Triple Safety Agency received an advance payment of P540,000 for a one-year…

A: Service income should be recognized as revenue when it is earned. Any advance received against which…

Q: During 2019, Namnama Company introduced a new product carrying a two-year warranty against defects…

A: Lets understand the basics. In Accrual basis, warranty cost is needed to be recorded in the period…

Q: For 2020, Sarasota inc. computed its annual postretirement expense as $ 237,200. Sarasota's…

A: Post-retirement benefit expense is the cost of pension recognized for the period. When determining…

Q: During 2019, Namnama Company introduced a new product carrying a two-year warranty against defects…

A: The price that a business expects to pay for the replacement or repair of goods that customers buy…

Q: For 2020, Sampsell Inc. computed its annual postretirement expense as $240,900. Sampsell's…

A: Journal entry: A journal entry is a systematic record of a financial transaction recorded in…

Q: Feller, Inc. sells a certain machine for $40,000. Included in this price is an implied service-type…

A: The objective of the question is to determine the total sales that Feller, Inc. should record for…

Q: FDN Trading is renting out a portion of its building. On July 1, 2022, it received a one-year…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: Entity A received a 12%, ₱200,000, one-year, note receivable on October 1, 20x1. Entity A uses a…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How much will be the amount to be paid on July 15 of the same year in payment an invoice dated June…

A: Formula: Payable amount = Invoice amount - Discount amount

Q: CRS Co. is preparing its December 31, 2018 year – end financial statements. The following…

A: Liabilities can be defined as the company's obligations which need to be fulfilled in the future…

Q: Using the given information, calculate the amount in respect of Subscription that is needed to be…

A: The Income and Expenditure Account is a summary of all items of income and expenditure which relate…

Q: At the adjustments: end of the month, you are also required to take into consideration the following…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: M&M Bank granted a loan to a borrower on April 1, 2020. The interest on the loan is 10% payable…

A: A loan is a debt amount granted by banks or other financial institutions to borrowers. The duration…

Q: CAB Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…

A: Revenues are recognized when cash is collected, and expenditures are recognized when cash is paid…

Q: The pre-collection/advanced collection is P360,000. This is applicable for a six-month rental period…

A: From September 30, 2020 to December 31, 2020 = 3 months So the rental income for 3 months is…

Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

The pre-collection/advanced collection is P360,000. This is applicable for a six-month
rental period starting November 1, 2020. The financial statements to be prepared are
dated December 31, 2020. How much is the unearned income to be reported in the
financial statements?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

16. On October 1, 2020, Zachary's Balloons borrowed S4,000 on a 12%, one-year note payable. Interest was payable semiannually. A correct adjusting entry was made on December 31, 2020, and a correct reversing entry was made on January 1, 2021. The entry that should be made on March 31, 2021, is a. Interest Payable 240 Cash 240 b. Interest Expense Interest Payable 120 120 Cash 240 c. Interest Expense 240 Cash 240 d. Interest Expense 120 Cash 120
on november 30, 2019, jenkins company loaned M.Lee $4,000 for one year at an annual interest rate 4%. prepare the entry that Jenkins company will make on November 30, 2019.
Dexter Company is preparing its financial statement for the year ended December 31, 2020. Accounts Payable amounted to P 1,200,000 before any necessary year-end adjustments related to the following: • At December 31, 2020, Dexter Company has P200,000 debit balance in its accounts payable to DEF, a supplier, resulting from a P 200,000 advance payment for goods to be manufactured to Dexter's specifications. . Checks in the amount of P300,000 were written to vendors and recorded on December 29, 2020. The checks were picked up on January 5, 2021 • Checks in the amount of P 150,000 were written to vendors and recorded on December 30, 2020. The checks were received by the vendors on December 31, 2020. What amount should Dexter Company report as accounts payable in its December 31, 2019 balance sheet?
On January 1, 2019, the Philippines Inc. issued P3,000,000, 12% promissory note for an equipment purchased. The note is to be paid on December 31, 2020. Interest is payable annually. The effective interest at the time of issuance of this note is 13%. (Use 4-decimal places for the PV factor)How much is the amount of equipment to be recorded on January 1, 2019?
Capricorn Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses. A P2,000 advertising bill was received January 6, 2020. It related to costs of P1,500 for advertisements in December 2019 issues and P500 for advertisements in January 2, 2020 issues of the newspaper. A store lease, effective December 15, 2018, calls for fixed rent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2019 were P2,200,000. In its December 31, 2019 statement of financial position, Capricorn should report accrued liabilities of: P51,500 P53,900 P56,800 P56,300
Fisher minus Wallace Corporation signed a six-month note payable on October 23, 2021. What accounts relating to the note payable will be reported on its financial statements for the fiscal year ending December 31, 2021?
AAA Company sells gift certificates that expire one year after their issuance. Information on gift certificates is shown below: Unearned revenue – gift certificates, January 1, 2020 - 600,000Gift certificates sold during 2019 - 1,000,000Prior year gift certificates redeemed in 2020 - 400,000Gift certificates sold and redeemed in 2020 - 700,000 How much is the unearned revenue from gift certificates as of December 31, 2020?
On June 1, 2021, Demer Consulting provides services to a customer for $150,000. To pay for the services, the customer signs a three-year, 12% note. The face amount is due at the end of the third year, while annual interest is due each June 1. Required: 1. Record the acceptance of the note on June 1, 2021.2. Record the interest collected on June 1 for 2022 and 2023, and the adjustment for interest revenue on December 31, 2021, 2022, and 2023.3. Record the cash collection on June 1, 2023. Record the acceptance of the note. please do a journal entry for each date. listed below. There should be 7 in total Date Jun 01, 2021 dec 31,2021 jan 01,2022 dec 31,2022 jun 01,2023 dec 31,2023 jun 01,2023
UA Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses. A P2,000advertising bill was received January 6, 2020. It related to costs of P1,500 for advertisements in December 2019 issues andP500 for advertisements in January 2, 2020 issues of the newspaper. A store lease, effective December 15, 2018, calls for fixedrent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of netsales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2019 were P2,200,000.In its December 31, 2019 statement of financial position, UA should report accrued liabilities of:a. P51,500 c. P53,900b. P56,800 d. P56,300
For the year ended Dec. 31, 2019, Nando Company paid interest totaling P100,000. The prepaid interest expense is P23,500 and P18,000, respectively, on December 31, 2018 and 2019. The interest payable is P45,000 and P53,500, respectively, on December 31, 2018 and 2019. What amount of interest expense should be reported on December 31, 2019?
A-One Mechanics Limited files GST returns monthly, and the GST rate is 5%. The figures in the following table represent the store's GST taxable sales and purchases for which GST is paid for the indicated months of the year. As part of a year-to-date review, determine A-One Mechanics Limited's net GST remittance and if they owe the government money or are entitled to a refund. The GST remittance is a(n) refund (Round to the nearest cent as needed.) of $ Month January February March April May Purchases Sales $ 158,114 $374,089 494,764 775,165 107,357 317,760 56,475 246,957 300,302 586,444
On November 30, 2021, the entity lent P45,000, receiving a promissory note to be collected after three months, together with the 20% interest. How much is the total liability related to this transaction at the end of 2021? Your answer