5. Beam Company provided the following data for the current year:Cash salesSales on accountP2,500,000850,0001,700,000400,000750,000250,000300,000150,000200,000Inventory - Jan 1Inventory - Dec 31Accrued expenses - Dec 31Prepaid expense - Dec 31Equipment- Dec 31Interest receivedP 500,000600,00020,00030,0001,000,00040,00010,00020,000Cash purchasesCredit purchasesExpenses paidAccounts receivable- Jan 1Accounts receivable- Dec 31Interest receivable - Jan 1Account payable - Jan 1Account payable - Dec 31On July 1 of the current year, an equipment was acquired for P200,000. The terms are P50,000down and the balance to be paid after one year. The useful life is 10 years with no residual value.What is the net income under cash & accrual basis?Interest receivable - Dec 31

In cash basis of accounting, only cash inflows and outflows are recorded. In accrual basis of…

Answered: Sales on account Cash purchases Credit…

Business

Accounting

Sales on account Cash purchases Credit purchases Expenses paid

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter11: The Statement Of Cash Flows

Section: Chapter Questions

Problem 13MCQ

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