CRS Co. is preparing its December 31, 2018 year – end financial statements. The following information was gathered.The bill for December’s utility costs of P30 000 was received and paid on January 10, 2019.A P 20 000 advertising bill was received on January 2, 2019. Of the total billing, P15 000 pertain to advertisements in December 2018.A lease, effective December 16, 2017, calls for a fixed rent of P100 000 per month, payable one month after the commencement of the lease and every month thereafter. In addition, rent equal to 5% of net sales over P1 000 000 per year is payable on January 31 of the following year.Total cash sales and collections on accounts amounted to P1 000 000. accounts receivable has a net increase of P200000. Commissions of 15% of sales are paid on the same day cash is received from customers.Requirement: Compute for the accrued liabilities on Dec. 31, 2018.

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

Answered: CRS Co. is preparing its December 31,…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

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CRS Co. is preparing its December 31, 2018 year – end financial statements. The following information was gathered.

The bill for December’s utility costs of P30 000 was received and paid on January 10, 2019.
A P 20 000 advertising bill was received on January 2, 2019. Of the total billing, P15 000 pertain to advertisements in December 2018.
A lease, effective December 16, 2017, calls for a fixed rent of P100 000 per month, payable one month after the commencement of the lease and every month thereafter. In addition, rent equal to 5% of net sales over P1 000 000 per year is payable on January 31 of the following year.
Total cash sales and collections on accounts amounted to P1 000 000. accounts receivable has a net increase of P200000. Commissions of 15% of sales are paid on the same day cash is received from customers.

Requirement: Compute for the accrued liabilities on Dec. 31, 2018.

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