7. The records of Lunch Co. on December 31, 20x1 show following information: Debits Credits 22,000,000 Sales . Beginning inventory Purchases 1,700,000 5,600,000 Purchase returns 500,000 Freight in Saláries of sales personnel Interest expense Advertising expense Research and development expense Directors' remuneration 400,000 670,000 340,000 320,000 180,000 2,000,000 520,000 280,000 160,000 Salaries of administrative personnel Rent expense Depreciation expense Commission.expense Impáirment loss on financial assets Insurance expense Income tax expense Unrealized gain on equity securities - FVOCI Gain on change in fair value - Cash flow hedge Totals 1,100,000 190,000 50,000 · 2,000,000 200,000 30,000 15,510,000 22,730,000 Additional information: Ending inventory amounts to P1,200,000. • One-half of the rent expense pertains to the sales department. The impairment loss on financial assets pertains to impairment of receivables recognized on contracts with customers. The items of other comprehensive income are net of tax. The gain on change in fair value on the cash flow hedge represents the effective portion. Requirements:
7. The records of Lunch Co. on December 31, 20x1 show following information: Debits Credits 22,000,000 Sales . Beginning inventory Purchases 1,700,000 5,600,000 Purchase returns 500,000 Freight in Saláries of sales personnel Interest expense Advertising expense Research and development expense Directors' remuneration 400,000 670,000 340,000 320,000 180,000 2,000,000 520,000 280,000 160,000 Salaries of administrative personnel Rent expense Depreciation expense Commission.expense Impáirment loss on financial assets Insurance expense Income tax expense Unrealized gain on equity securities - FVOCI Gain on change in fair value - Cash flow hedge Totals 1,100,000 190,000 50,000 · 2,000,000 200,000 30,000 15,510,000 22,730,000 Additional information: Ending inventory amounts to P1,200,000. • One-half of the rent expense pertains to the sales department. The impairment loss on financial assets pertains to impairment of receivables recognized on contracts with customers. The items of other comprehensive income are net of tax. The gain on change in fair value on the cash flow hedge represents the effective portion. Requirements:
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.4.7P
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