NSU COMBO F/INTERM.ACCTG-CONNECT ACCESS
10th Edition
ISBN: 9781266020193
Author: SPICELAND
Publisher: MCG
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Sagada Company's summary of cash records show the following for the year 2022, its first year of operation: CASH: Cash receipts - debit, P 3,840,000 Cash disbursements - credit, P 2,475,000 December 31 balance, P 1,365,000 You are contacted by the management to compute its net income using the accrual basis of accounting. During the process of preparation, the following were identified by you that will impact your computation: Property, plant and equipment are depreciated on a straight line basis. Annual depreciation is P 630,000. Prepaid insurance of P 108,000 was recognized as expense when it was paid. One-thirds of the balance is for year 2023. The entire amount of P 1,080,000 which was received as advance rental for office space in its building was recognized as rent income when received. Twenty five percent of the amount will be earned in 2023. Employees are due P 162,000 at the end of 2022. Uncollected interest from investment at the end of 2022 is P 190,200. It is estimated that…
Holloway Company earned $6,200 of service revenue on account during Year 1. The company collected $5,270 cash from accounts recievable during Year 1.
a. the balance of the accounts recievable that would be reported on the Decmeber 31,Year1,balance sheet
b. the amount of net income that would be reported on the Year 1 income statement.
c. the amount of net cash flow from operating activites that would be reported on the Year 1 statement of cash flows
d. the amount of retained earnings that would be reported on the Year 1 balance sheet
Salus Mea Inc., is developing its annual financial statements at December 31, current year. The
statements are complete except for the statement of cash flows. The completed comparative
balance sheets and income statement are summarized as follows:
Balance sheet at December 31
Cash
Accounts receivable
Merchandise inventory
Property and equipment
Less: Accumulated depreciation
Accounts payable
Wages payable
Note payable, long-term
Common stock and additional paid-in capital
Retained earnings
Income statement for current year
Sales
Cost of goods sold
Depreciation expense
Other expenses
Net income
Additional Data:
1. Bought equipment for cash, $48,900.
2. Paid $14,700 on the long-term note payable.
Current Year
$ 73,250
15,250
23,450
209,250
(57.450)
$263,750
$ 16,500
2,000
56,300
103,950
$5,000
$263.750
$205,000
(123,500)
(11,700)
(4),000)
$26.800
3. Issued new shares of stock for $38,050 cash.
4. Dividends of S650 were declared and paid.
5. Other expenses all relate to wages.
6.…
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