Chapter 2, Problem 2.15E

The business is a trading business. For the period, it purchased goods for sale valued at ₱100,000. The goods were all sold for a total price of ₱120,000. For the sale only 10% was received as down payment, 60% were later collected, and at the end of the year 30% are still for collection. How much is the business income

Identify the accounting concept that was violated in each of the following situations.1. Astro Turf Company recognizes an expense, cost of goods sold, in the period the product is manufactured.2. McCloud Drug Company owns a patent that it purchased three years ago for $2 million. The controller recently revalued the patent to its approximate market value of $8 million.3. Philips Company pays the monthly mortgage on the home of its president Larry Crosswhite and charges the expenditure to miscellaneous expense.

Swish Ltd has the following results for the year ended 31 March 2020.                                                                                                          £ Net loss per Accounts (Note (1))                                                (116,500) Interest receivable                                                                          3,500 Chargeable gain                                                                            44,500   Notes (1) Net loss is after charging:                                                       £ Depreciation                                                                            10,800 Entertaining customers                                                              1,200   (2) All other expenses are allowable for corporation tax.   (3) The written down value of plant and machinery on the main pool at 1 April 2019 was £20,000. There were no purchases or sales during the year ended 31 March 2020.           (4) Swish Ltd has…

On July 31, 2019 the balances of the accounts appearing in the ledger of Pedroni Interiors company a furniture wholesales, are as follows. Accumulated Depreciation – Building      $365,000        Ray Zorzi – Capital            $530,000 Administrative Expenses                               440,000        Ray Zorzi – Drawing              15,000 Building                                                            810,000        Sales                                    1,437,000 Cash                                                                   78,000          Sales tax Payable                     4,500 Cost of Merchandise Sold                            775,000          Selling Expense                    160,000 Interest Expense                                                 6,000           Store Supplies                         16,000 Merchandise Inventory                                115,000            Store Supplies Expense       21,500 Notes Payable…

Harry, the owner of Harry Pte Ltd, was finalising his company accounts for the year ending 31 December. His accountant has just met with an accident, and he approached you for help. Harry presented you the unadjusted trial balance. Assumes the company uses the perpetual inventory system.                                                                                Debit                           Credit Machine at cost                                                    130,000        Motor Vehicles at cost                                          150,000 Accumulated depreciation - Motor vehicles                                               30,000 Cash                                                                      80,000 Share capital                                                                                            180,000 Retaining earnings , 31 dec 2020                                                             100,000 Bank loan (Long term)…

PLEASE SHOW SOLUTIONS IN GOOD ACCOUNTING FORM.   6. On January 01, 2020 Kit Company, Inc. establishes a branch in Bauang. During the year, Kit Inc. transfers cash and merchandise to the branch worth P15,000 and P45,000 respectively. Freight was paid by the home office worth P1,500 included in the cost of merchandise. The home office also incurred P5,700 expenses of which 30 percent was allocated to the branch. On December 31, 2020, the branch incurred a loss of P4,000. What is the balance of the branch account as per home office books?

8.The Carly Company uses cash-basis accounting for their records. During the year, Carly collected P500,000 from its customers, made payments of P200,000 to its suppliers for inventory, and paid P140,000 for operating costs.  Carly wants to prepare accrual-basis statements.  In gathering information for the accrual-basis financial statements, Carly discovered the following: Customers owed Carly P50,000 at the beginning and P35,000 at the end of the year. Carly owed suppliers P20,000 at the beginning and P27,000 at the end of the year. Carly's beginning inventory was P42,000, and its ending inventory was P44,000. Carly had prepaid expenses of P5,000 at the beginning and P7,400 at the end of the year. Carly had accrued expenses of P12,000 at the beginning and P19,000 at the end of the year. Depreciation for the year was P51,000.   Determine the accrual basis net income of Carly Company for the current year. Group of answer choices P91,400 P98,400 P79,600 P84,400

Good Call is a delivery business that provides its services in cash and on credit. It has a large fleet of vehicles which are subject to depreciation. For the month ending in February 2022, the business reported the following items: Description $ Cash sales 250,000 Credit sales 100,000 Depreciation expense 35,000 Cash receipts for sales from prior periods 60,000 Cash purchase of a vehicle 50,000 Various other expenses 70,000   Assuming all expenses are paid in cash except where an expense is a non-cash expense, calculate net profit/loss under accrual accounting and a net cash flow for the month of February. Show your workings. Ignore GST.

The following transactions took place during 2021 and were not recorded in the book’s of Monpa:1. The business purchased an equipment that worth £100,000 on 04/01/2021 by check. It is expected to have a life of 6 years and is estimated to have a residual value of £10,000. Monpa follows the straight-line method for calculating depreciation. The purchase of the equipment was not recorded in the firm’s accounting books too.2. The firm sold goods for £122,295 on credit. The cost of these goods is £78,900.3. £1,750 was paid during the year for Heat and Light (This transaction was recorded). However, before the end of the year, the Heat and Light bill arrived for the last quarter showing a charge of £590 and was not paid nor recorded for the year.4. A customer who owes the business £2,250 declared his bankruptcy and was considered to become bad.  5. The firm paid £15,000 of interest by check during the year 2021.6. The advertising expense for the year was £8,000.7. The business is subject to…