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Compute for the following: 1. Amount from cash collected from accounts receivable during 2021. 2. Cash payment on accounts payable during 2021.

Compute for the following: 1. Amount from cash collected from accounts receivable during 2021. 2. Cash payment on accounts payable during 2021.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2021 2020 Cash Р300,000 840,000 660,000 100,000 80,000 1,130,000 (110,000) P200,000 580,000 420,000 50,000 Accounts Receivable, net Merchandise Inventory Prepaid Expenses Long-term Investments Land, Buildings and Fixtures Accumulated Depreciation 600,000 (50,000) Total Current Assets P3,000,000 P1,800,000 Accounts Payable Accrued Expenses Dividends Payable Notes Payable – due 2023 Ordinary Shares Retained Earnings Total Liabilities and Equities P530,000 140,000 70,000 500,000 1,200,000 560,000 P440,000 130,000 900,000 330,000 P3,000,000 P1,800,000 Income Statement Net credit sales P6,400,000 5,000,000 P1,400,000 1,000,000 P400,000 P4,000,000 3,200,000 P800,000 520,000 Cost of Goods Sold Gross Profit Expenses (including Income Taxes) Net Income P280,000 Additional information: 1. All accounts receivable and accounts payable are related to trade merchandise. Accounts payable recorded net and always are paid to take all of the discount allowed. 3. The allowance for doubtful accounts at the end of the two years are the same. No receivables were charged against the allowance during the year 2021. 4. The proceeds from the note payable were used to finance a new store building. 5. Capital stock was sold to provide additional working capital. 2. Compute for the following: Amount from cash collected from accounts receivable during 2021. Cash payment on accounts payable during 2021. 1. 2.
Transcribed Image Text:2021 2020 Cash Р300,000 840,000 660,000 100,000 80,000 1,130,000 (110,000) P200,000 580,000 420,000 50,000 Accounts Receivable, net Merchandise Inventory Prepaid Expenses Long-term Investments Land, Buildings and Fixtures Accumulated Depreciation 600,000 (50,000) Total Current Assets P3,000,000 P1,800,000 Accounts Payable Accrued Expenses Dividends Payable Notes Payable – due 2023 Ordinary Shares Retained Earnings Total Liabilities and Equities P530,000 140,000 70,000 500,000 1,200,000 560,000 P440,000 130,000 900,000 330,000 P3,000,000 P1,800,000 Income Statement Net credit sales P6,400,000 5,000,000 P1,400,000 1,000,000 P400,000 P4,000,000 3,200,000 P800,000 520,000 Cost of Goods Sold Gross Profit Expenses (including Income Taxes) Net Income P280,000 Additional information: 1. All accounts receivable and accounts payable are related to trade merchandise. Accounts payable recorded net and always are paid to take all of the discount allowed. 3. The allowance for doubtful accounts at the end of the two years are the same. No receivables were charged against the allowance during the year 2021. 4. The proceeds from the note payable were used to finance a new store building. 5. Capital stock was sold to provide additional working capital. 2. Compute for the following: Amount from cash collected from accounts receivable during 2021. Cash payment on accounts payable during 2021. 1. 2.
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