the books of BACOLOD CORP. for the period ended December 31, You were TER 11-PROBLEM 8: 2018. The bookkeeper of the client provided you the following summarized data taken directly from its records: Sales for cash Total cash collected from charge customers Cash purchases of merchandise Credit purchases of merchandise Expenses paid in cash Accounts receivable, January 1 Accounts receivable, December 31 Bad debt expense Recovery of bad debts Allowance for doubtful accounts, January 1 Allowance for doubtful accounts, December 31 Accounts payable, January 1 Accounts payable, December 31 Merchandise inventory, January 1 Merchandise inventory, December 31 Accrued expenses, December 31 Prepaid expenses, December 31 Furniture and equipment, at cost Interest received Accrued interest income, January 1 Purchase returns Purchase discounts us the P7,500,000 2,550,000 5,100,000 1,200,000 2,250,000 4. What is the net income for the year? 750,000 1,200,000 100,000 25,000 125,000 175,000 450,000 600,000 1,500,000 1,800,000 60,000 90,000 Additional information: The furniture and equipment which had an estimated useful life of 10 years were acquired on July 1, 2015 and were estimated to have a 10% salvage value based on cost. The company uses the double declining balance method in computing the depreciation. Requirements: 3,000,000 120,000 30,000 120,000 210,000
the books of BACOLOD CORP. for the period ended December 31, You were TER 11-PROBLEM 8: 2018. The bookkeeper of the client provided you the following summarized data taken directly from its records: Sales for cash Total cash collected from charge customers Cash purchases of merchandise Credit purchases of merchandise Expenses paid in cash Accounts receivable, January 1 Accounts receivable, December 31 Bad debt expense Recovery of bad debts Allowance for doubtful accounts, January 1 Allowance for doubtful accounts, December 31 Accounts payable, January 1 Accounts payable, December 31 Merchandise inventory, January 1 Merchandise inventory, December 31 Accrued expenses, December 31 Prepaid expenses, December 31 Furniture and equipment, at cost Interest received Accrued interest income, January 1 Purchase returns Purchase discounts us the P7,500,000 2,550,000 5,100,000 1,200,000 2,250,000 4. What is the net income for the year? 750,000 1,200,000 100,000 25,000 125,000 175,000 450,000 600,000 1,500,000 1,800,000 60,000 90,000 Additional information: The furniture and equipment which had an estimated useful life of 10 years were acquired on July 1, 2015 and were estimated to have a 10% salvage value based on cost. The company uses the double declining balance method in computing the depreciation. Requirements: 3,000,000 120,000 30,000 120,000 210,000
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter6: Losses And Loss Limitations
Section: Chapter Questions
Problem 1BD
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Transcribed Image Text:2018. The bookkeeper of the client provided you the following summarized data taken directly
You were assigned to audit the books of BACOLOD CORP. for the period ended December 31,
from its records:
Sales for cash
Total cash collected from charge customers
Cash purchases of merchandise
Credit purchases of merchandise
Expenses paid in cash
Accounts receivable, January 1
Accounts receivable, December 31
Bad debt expense
Recovery of bad debts
Allowance for doubtful accounts, January 1
Allowance for doubtful accounts, December 31
Accounts payable, January 1
Accounts payable, December 31
Merchandise inventory, January 1
Merchandise inventory, December 31
Accrued expenses, December 31
Prepaid expenses, December 31
Furniture and equipment, at cost
Interest received
Accrued interest income, January 1
Purchase returns
Purchase discounts
us the
CHAPTER 11-PROBLEM 8:
4. What is the net income for the year?
P7,500,000
2,550,000
5,100,000
1,200,000
2,250,000
750,000
1,200,000
100,000
25,000
125,000
175,000
450,000
600,000
1,500,000
1,800,000
60,000
90,000
Additional information:
The furniture and equipment which had an estimated useful life of 10 years were
acquired on July 1, 2015 and were estimated to have a 10% salvage value based on cost. The
company uses the double declining balance method in computing the depreciation.
Requirements:
3,000,000
120,000
30,000
120,000
210,000
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