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 fıre 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.

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 fıre 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.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter9: Working Capital

Section: Chapter Questions

Problem 14E

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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 P6.1 million P6.4 million P8.1 million P8.4 million PreviousNext
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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