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Activity: Cash & Accrual Basis

1. The document provides computations for sales, purchases, expenses, and depreciation on an accrual basis for a company. It includes an income statement showing net sales of P4,475,000, cost of goods sold of P3,770,000, expenses of P474,000, and net income of P231,000. 2. The statement of financial position shows total assets of P1,560,000 including current assets of P1,465,000 and non-current assets of P95,000. Total liabilities are P125,000 and shareholders' equity is not stated. 3. Notes further explain items such as cost of goods sold, expenses, receivables,

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38 views

Activity: Cash & Accrual Basis

1. The document provides computations for sales, purchases, expenses, and depreciation on an accrual basis for a company. It includes an income statement showing net sales of P4,475,000, cost of goods sold of P3,770,000, expenses of P474,000, and net income of P231,000. 2. The statement of financial position shows total assets of P1,560,000 including current assets of P1,465,000 and non-current assets of P95,000. Total liabilities are P125,000 and shareholders' equity is not stated. 3. Notes further explain items such as cost of goods sold, expenses, receivables,

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Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Activity: Cash & Accrual Basis

Computation of Sales
Sales P 4,400,000
Add: Accounts receivable - Dec. 31 100,000
Total 4,500,000
Less: Advances to customer (25,000)
Sales P 4,475,000

Computation of purchases
Purchases P 4,200,000
Add: Accounts payable - Dec. 31 80,000
Total 4,280,000
Less: Advances to officer (10,000)
Purchases P 4,270,000

Computation of Expenses
Expenses P 560,000
Add: Accrued expense 20,000
Total 580,000
Less: Supplies P 5,000
Equipment 100,000
Insurance 15,000 120,000
Expenses P 460,000
Merchandise Inventory - Dec 31 500,000
Income Summary 500,000
To establich merchandise inventory

AR 100,000
Sales 100,000
To record accrual

Pur 80,000
AP 80,000
To record accrual

Exp 20,000
Accrued exp 20,000
To record accrual

Advances to officer 10,000


Pur 10,000
To record advance to President

Sales
advances to customers 25,000
To record advances from customers 25,000

Doubtful accounts expense 5,000


Allowance for doubtful account 5,000
to record doubful accounts

Supplies
Expenses 5,000
To record unused supplies 5,000

Equipment 100,000
Expenses 100,000
To record equipment

Depreciation 5,000
Accumulated Depreciation 5,000
To record depreciation

Prepaid Insurance 15,000


Expenses 15,000
To record unexpired insurance

Interest Expense 4,000


Accrued interest payable 4,000
To record accrued interest
Income Statement

NET SALES P 4,475,000


COST OF GOODS SOLD 1 3,770,000
GROSS PROFIT p 705,000
EXPENSES 2 474,000
NET INCOME p 231,000

Statement of Financial Position

ASSETS
CURRENT ASSETS
CASH P 840,000
TRADE & OTHER RECEIVABLES 3 105,000
INVENTORY 500,000
PREPAID EXPENSES 4 20,000
TOTAL CURRENT ASSETS P 1,465,000
NONCURRENT ASSETS
PROP., PLANT & EQUIPMENT, NET 5 P 95,000
TOTAL NONCURRENT ASSETS 95,000
TOTAL ASSETS p 1,560,000
LIABILITIES & SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
TRADE & OTHER PAYABLES 6 P 125,000
NOTES PAYABLE 4,000
TOTAL CURRENT LIABILITIES
SHAREHOLDERS EQUITY

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY


NOTE 1 COST OF GOODS SOLD
Purchases P 4,270,000
Inventory - Dec. 31 (500,000)
Cost of goods sold P 3,770,000

NOTE 2 EXPENSES
Expenses P 460,000
Doubtful accounts 5,000
Depreciation 5,000
Interest expense 4,000
Total expenses P 474,000

NOTE 3 TRADE & OTHER RECEIVABLES


Accounts receivable P 100,000
Advances to officer 10,000
Total 110,000
Less: Allowance for doubtful accounts 5,000
Total Trade & other receivables P 105,000

NOTE 4 PREPAID EXPENSES


Supplies P 5,000
Prepaid insurance 15,000
Total Prepaid Expenses P 20,000

NOTE 5 PROP., PLANT & EQUIPMENT


Equipment P 100,000
Less: Accumulated Depreciation 5,000
Total Prop., Plant & Equipment P 95,000

NOTE 6 TRADE & OTHER PAYABLES


Accounts payable P 80,000
Accrued expense 20,000
Advances from customers 25,000
Total Trade & other payables P 125,000
Activity: Single Entry

COMPUTATION OF SALES Income Statement

NET SALES
COST OF GOODS SOLD

COMPUTATION OF PURCHASES EXPENSES

COMPUTATION OF DEPRECIATION

Statement of Financial Positi

COMPUTATION OF INTEREST EXPENSE ASSETS


CURRENT ASSETS
CASH

INVENTORY

NONCURRENT ASSETS
PROP., PLANT & EQUIPMENT, NET

LIABILITIES & SHAREHOLDER'S E


LIABILITIES
TRADE & OTHER PAYABLES
LOAN PAYABLE

SHAREHOLDERS' EQUITY

RETAINED EARNINGS
Income Statement NOTE 1

2
NOTE 2

ement of Financial Position

ASSETS

3 NOTE 3
4

UIPMENT, NET 5 NOTE 4

TIES & SHAREHOLDER'S EQUITY

6
NOTE 5

6,000,000

7
NOTE 6
COST OF GODDS SOLD

EXPENSES

CASH

ACCOUNT RECEIVABLE, NET

PROP., PLANT & EQUIPMENT, NET

TRADE & OTHER PAYABLES

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