Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent expenses. A P50,000 advertising bill was received on January7, 2021, comprising of P37,500 for advertisements in December 2020 andP12,500 for advertisements in January 2021 issued of the newspaper. A store lease effective December 1, 2020 calls for a fixed rent of P120,000 permonth payable at the beginning of each month. In addition, rent equal to 5% ofnet sales over P3,000,000 per month is payable on the 20th day of the followingmonth. Net sales for December were P5,500,000.In its December 31, 2020 statement of financial position, Apachi should reportaccrued liabilities of?
Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent expenses. A P50,000 advertising bill was received on January7, 2021, comprising of P37,500 for advertisements in December 2020 andP12,500 for advertisements in January 2021 issued of the newspaper. A store lease effective December 1, 2020 calls for a fixed rent of P120,000 permonth payable at the beginning of each month. In addition, rent equal to 5% ofnet sales over P3,000,000 per month is payable on the 20th day of the followingmonth. Net sales for December were P5,500,000.In its December 31, 2020 statement of financial position, Apachi should reportaccrued liabilities of?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...
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Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent expenses. A P50,000 advertising bill was received on January7, 2021, comprising of P37,500 for advertisements in December 2020 andP12,500 for advertisements in January 2021 issued of the newspaper. A store lease effective December 1, 2020 calls for a fixed rent of P120,000 permonth payable at the beginning of each month. In addition, rent equal to 5% ofnet sales over P3,000,000 per month is payable on the 20th day of the followingmonth. Net sales for December were P5,500,000.In its December 31, 2020
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