Problem- The following data is obtained from a single entry records kept by Mikko Tan, a

proprietor of a small hardware supply store:

Mar. 31 Apr. 1
Assets
Cash 88,600 76,000
Accounts Receivable 223,000 148,000
Notes Receivable (Trade) 24,000 15,000
Accrued Interest Receivable 3,400 2,600
Merchandise Inventory 138,000 103,000
Supplies on Hand 1,700 800
Prepaid Interest Expense 1,200 -
Furniture and Equipment 88,000 64,000
Accumulated Depreciation-Furniture and Equipment 28,000 20,000

Liabilities
Notes Payable 50,000 -
Accounts Payable 72,500 45,000
Accrued Salary Expense 1,900 1,600
Deferred Rent Revenue 3,200 2,700

An analysis of the store’s business papers showed the following supplementary data:
1. Sales returns and allowances amounting to P3,700 were credited to customers accounts.

2. Purchase discounts of P4,600 were received from trade creditors.

3. An old equipment was sold for P4,000, as recorded in cash receipts. The equipment was
50% depreciated at the time of its sale.

4. The cash receipts include the proceeds of bank loans for which notes of P80,000 were
issued. The interest of P3,500 had been deducted by the bank in advance.

5. Partial payment of P30,000 was made on the notes payable.

The cash records show the following:

Balance, April 1,2020 P76, 000
Receipts:
Cash Sales 39,000
On accounts and notes receivable arising from sales 325,000
From rental of office space 27,000
From interest revenue 800
From sale of equipment 4,000
From discounting own notes at bank 76,500
From additional investment 20,000 , 492,300
Total 568,300
Payments:
On accounts payable for purchases 303,000
For salaries 64,000
For supplies 3,200
For acquisition of new equipment 36,000
For miscellaneous expenses 8,500
To bank on notes payable 30,000
Proprietor’s withdrawal 35,000 , 479,700
Balance, March 31, 2021 88,600

Required:
1. Compute the profit under the single entry method.
2. Financial Statements under the accrual basis of accounting accompanied by
supporting computations.