Professional Documents
Culture Documents
(P620,000 x 1.5%)
Computation:
Required Allowance for bad debts at year
end 14,500.00
(P290,000 x 5%)
Case 2
Sales 5,000.00
Cash 720.00
e. Cash 4,850.00
Cash 200.00
Cash 1,980.00
Sales 7,000.00
j. Cash 6,860.00
Case 3
XYZ Corporation
Statement of Cash Flow
For the year ended March 31, 2006
(amounts in Philippine Peso)
Total 625,000.00
Accumulated 155,000.00
Should be RE 281,000.00
Case 4
Inventory 1,000.00
Advertising 500.00
to reclassify accounts
5 Cash in bank 16,000.00
Case 5
1.a
50 5.10 255.00
75 5.00 375.00
Balance
1.b
Sales:
2.a
Case 6
Sales 15,800.00
c. Purchases 13,500.00
e. Insurance 2,600.00
(P7,800/12 x 4 months)
Insurance 2,900.00
(P8,700/12 x 4 months)
Utilities 900.00
Salaries 1,100.00
Utilities 1,500.00
Salaries 1,600.00
to accrue expenses
2. The bank requested for the 2005 financial statements prepared under the
Accrual Basis of accounting because the bank wants to see the real
performance and position of the business. Proper matching of revenues and
expenses are observed under the Accrual Basis.
Case
8
2 Cash 27,000.00
Equipment 44,000.00