UA Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses. A P2,000 advertising bill was received January 6, 2020. It related to costs of P1,500 for advertisements in December 2019 issues and P500 for advertisements in January 2, 2020 issues of the newspaper. A store lease, effective December 15, 2018, calls for fixed rent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2019 were P2,200,000. In its December 31, 2019 statement of financial position, UA should report accrued liabilities of: a. P51,500 c. P53,900 b. P56,800 d. P56,300
UA Company must determine the December 31, 2019 year-end accruals for advertising and rent expenses. A P2,000
advertising bill was received January 6, 2020. It related to costs of P1,500 for advertisements in December 2019 issues and
P500 for advertisements in January 2, 2020 issues of the newspaper. A store lease, effective December 15, 2018, calls for fixed
rent of P4,800 per month payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net
sales over P1,200,000 per calendar year is payable on January 31 of the following year. Net sales for 2019 were P2,200,000.
In its December 31, 2019
a. P51,500 c. P53,900
b. P56,800 d. P56,300
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