Under the accrual basis rental income of EL Company for the calendar year 2020 is P600,000. Additional information regarding rental income are presented below:                  Unearned rental income, January 1, 2020                            P50,000                Unearned rental income, December 31, 2020                     75,000                Accrued rental income, January 1, 2020                                 30,000                Accrued rental income, December 31, 2020                         40,000 Under the cash basis, how much rental income should be reported by EL Company in year 2020? Group of answer choices   d. P655,000   c. P625,000   b. P615,000   a. P585,000

Q: On January 1, 2020 West Co. exchanged equipment for an $800,000 non-interest-bearing note due on…

A: The income statement is prepared to record all the revenues and expenses of the current period and…

Q: Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent…

A: The accrued liability refers to an expense incurred by a business but not yet paid. These are costs…

Q: Consider the following information from the record of Ornamental Green Garden at the end of the…

A: Total liabilities = account payable + interest payable + accrued interest + notes payable = 600000 +…

Q: On November 1, 2019, Holiday, Inc. received $16,000 that it would earn over the next 16 months.…

A: Revenue means the amount earned by selling the goods or services. Unearned revenue means the amount…

Q: Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data…

A: 1. Warranty Expense  = 2% of Net sales   Net sales = 3,200,000 Warranty expense = 3,200,000 x 2% =…

Q: On January 2, 2021, Capcom Co. sold merchandise to , Nintendo Inc. for P1,200,000. The cost of items…

A: The question is related to sale of goods on installment. In the given question the goods were sold…

Q: 1) Tappa Corp.'s current liabilities at December 31, 2020, totaled P1,600,000 before any necessary…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: On December 1, 2021, your company borrowed $15,000, a portion your company will make the following…

A: Answer : On December 31,2021 $2000 of the loan will be presented as current liability because it is…

Q: On January 2, 2020, Brook Company acquired machinery by Issuing a 5%, $350,000 note due in 5 years…

A: Current portion of liability means the obligation that an entity would settle within a year and…

Q: Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2021. How much would be…

A: Value Added Tax(VAT)-:It is a value-added tax, understood in a few countries as a product and…

Q: The pre-collection/advanced collection is P60,000. This is applicable for a six- month rental period…

A: Six months rental period is ending on January 31, 2021.   This means rent is related to 2021 for 1…

Q: Under accrual basis, rental income of Kamahal-Mahal Company for the year 2020 is P600,000.…

A: Accrual basis: Under accrual basis accounting, revenue and expenses are recognized when they are…

Q: CAB Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…

A: Cash basis of accounting is that accounting methodology in which all the expenses paid and income…

Q: 30,000 to apply for 2020 was received from a sublease contract. P40,000 total interest income from…

A: Net Sales = 20,00,000 Purchases = 12,00,000 Opening Inventory = 2,00,000 Closing Inventory =…

Q: 1-year advanced rent of P30,000 to apply for 2020 was received from a sublease contract. P40,000…

A: Net Sales = 20,00,000 Purchases = 12,00,000 Opening Inventory = 2,00,000 Closing Inventory =…

Q: 12) MNO Company operates a retail store and must determine the proper December 31, 2020, year-end…

A: Accrued liabilities refer to the amount which is payable to the outsiders within the next operating…

Q: Light Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…

A: Rental Income:- It is an income that appears in the Income statement. It is that income which one…

Q: Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year…

A: Under Cash basis of accounting revenue is recorded when the actual cash received, the major drawback…

Q: Siomai Company estimates its annual warranty expense as 2% of annual net sales. The following data…

A: Warranty expense during the year = Net sales x estimated % of warranty expense

Q: For the year ended Dec. 31, 2020, The Company paid interest totaling P100,000. The prepaid interest…

A: Interest expense refers to the cost which is incurred through the entity for the borrowed funds. It…

Q: Ajam Inc. shows the following selected adjusted account balances at March 31, 2019: $ 58,000…

A: Ajam Inc. Balance Sheet March'31, 2019 Liabilities Current Liabilities:     Accounts…

Q: Umasa Company reported rental revenue of P2,210,000 in the cash basis income tax return for the year…

A: The income statement represents the net income or net loss that is calculated by deducting the…

Q: On December 31, 2020 you McCormick Ltd. Sells manufacturing equipment to a customer on the following…

A: Journal- A journal keeps track of all of an organization's business transactions. A company may…

Q: CAB Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…

A: Revenues are recognized when cash is collected, and expenditures are recognized when cash is paid…

Q: The pre-collection/advanced collection is P360,000. This is applicable for a six-month rental period…

A: From September 30, 2020 to December 31, 2020 = 3 months   So the rental income for 3 months is…

Q: On July 1, 2020 Walker Inc. signed a $600,000, 15 month, 10% note payable. At due date, the…

A: This is based on bill of exchange, in the given case since note is payable in 15 months and the same…

Q: Able Inc. borrowed $60,000 on October 1, 2019 and agreed to pay back $75,000 on October 1, 2022. How…

A: Interest: It refers to the charge which is paid by a borrower to the lender for using his funds.

Q: AAA Company sells gift certificates that expire one year after their issuance. Information on gift…

A: Unearned revenue is the revenue received in advance. it must be shown in liabilities but not to be…

Q: Kadita Sales sells cars on the installment basis. Presented below are the data for the past three…

A: 2019: cost of sales 1002950 less sales 1543000     collection :1518000  against1543000 . now in…

Q: The prepaid rent is P12,000 good for three months starting November 30, 2020. The balance sheet date…

A: As per the asset method, we need to record prepaid rent at the time of amount paid, and adjusting…

Q: For the year ended Dec. 31, 2019, Nando Company paid interest totaling P100,000. The  prepaid…

A: Interest expense is an expense that is due on the amount borrowed from the lender. It is reported in…

Q: Max Coco's December 31, 2020 financial information is presented below: ASSETS PHP LIABILITIES PHP…

A: Gross profit margin = Gross profitNet sales ×100

Q: Dimagiba Company began operation at the beginning of 2021. During the year, it had cash sales of…

A: Gross profit on cash sales  = 6875,000× 25/125 = 13,75,000

Q: CAB Co. reported rent income of P600,000 under cash basis accounting for 2020. Additional…

A: Cash collection in 2020 is the sum of cash rental income and cash received that is unearned. The…

Q: during november 2020 marvin's pre owned vechiles lts sells high end car for 120,000. the cost of the…

A: Net income is the difference between total revenues generated and total expense incurred during the…

Q: Pythagoras Company must determine the December 31, 2021 year-end accruals for advertising and rent…

A: solution : calculation of accrued liability as on december 31 2021 Advertisement expenses…

Q: As of December 31, 2020, Andrei Corporation has P 5,000,000 contract in progress on which the…

A: Percentage completion method uses the percentage of work that has completed. So, the income is…

Q: Cebu Company reported a retained earnings balance of P5,000,000 at January 1, 2020. In August 2020,…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Shining Star LLC come Statement for the year ending 31 December 2019 t Sales OMR 25000 st of Goods…

A: Formulas: Net Income after tax = Net income before tax - Tax expenses Tax Expense = Net Income x…

Q: On May 1, 2021, Nees Manufacturing lends $10,000 to Roberson Supply using a 9% note due in 12…

A: Interest revenue = Amount of notes x rate of interest x period May 1, 2021 to December 31,2021 = 8…

Q: Berlin Corp. reported the following data for 2019: Total net sales made to customers were P2,000,000…

A: Introduction:- Earned money that is subject to federal or state taxation is referred to as taxable…

Q: HANGANG Park has life insurance policies on its officers’ lives. Annual premiums amount to P50,000.…

A: The amount of money received when an insurance policy or annuity has been cancelled is known as cash…

Q: Maria reported has the following transactions for the year 2020. Gross sales-100,000 php Sales…

A: (1) Maria has 2 incomes - Business and Interest Income on Bank Deposits. (2) Net Sales = Gross Sales…

Q: Company must determine the December 31, 2020year-end accruals for advertising and rent expenses. A…

A: Rent accrued on December 31, 2020 = (Net sales for 2020 - P3,000,000) x 5% = (5500000-3000000)*5% =…

Q: The pre-collection/advanced collection is P360,000. This is applicable for a six-month rental period…

A: Advance collection of rent for 6 months = P 360,000 Rental payment period = 6 Months Months from Nov…

Q: Under the accrual basis, rental income of EM Corporation for the calendar year 2019 is ₱600,000.…

A: Unearned Income(Advance Income) are those income which have been received by the firm during the…

Q: Plantito Company began operations on January 1, 2019 and appropriately uses the installment method…

A: Under the installment method of accounting, the gross profit or income is recognized with respect to…

Q: On February 14, 2019, Prime Company sold 50 air conditioning units. The sale price for each unit is…

A: Sales Price-: The price that is reimbursed by the customer at the time when something is purchased…

Q: The business receives a promissory hote of P20,000, carrying an interest rate of P12%. The note is…

A: The interest earned during the period but not received yet is recorded as Accrued interest.

Q: The following data for Roco Corp. Are available for 2021: Installment accounts, receivable 12/31/21…

A: Given information: Installment Accounts Receivable at year end = 100000 Installment Sales = 350000

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.