M8: Activity No. 3A Due Apr19at6pm Points 15 Questions 15 Available Apr 12 at 11am -Apr19 at 6pm 7days Time Limit None Allowed Attempts 3 Instructions This is a graded practice on basic cash vs accrual basis of accounting problems, [iste te cu aan] Attempt History Attempt Time Score KEPT Attempt 2_ 14 minutes 13 out of 15 LATEST Attempt 2_ 14 minutes 13 out of 15, Attempt 1_ 98 minutes 13 out of 15, © Correct answers will be available Apr 20 at pm - May 28 at 3pm. Score for this attempt: 13 out of 15 Submitted Apr 16 at 2:07pm This attempt took 14 minutes. Question 1 1/1 pts Killarney Company provided the following data for the current year: Sales P 10,000,000) Cost of goods sold 5,300,000 |Operating expenses 3,800,000December 31 January 4 Prepaid operating 4,000,000 700,000 lexpenses lAccounts payable 1,350,000} 4,200,000 linventory 2,500,000 2,100,000 [Accounts receivable 1,400,000} 1,375,000 Under cash basis, what amount should be reported as purchases for the current year? 5,550,000 Question 2 1/1 pts Roundstone Company had a balance of P820,000 in the professional fees. expense account on December 31, 2019 before considering year-end adjustments relating to the following: = Consultants were hired for a special project at a total fee not to exceed P650,000. The entity had recorded P550,000 of this fee based on billings for work performed in 2019. = The attorney's letter requested by the auditors dated January 31, 2020, indicated that legal fees of P60,000 were billed on January 15, 2020 for work performed in November 2019, and unbilled fees for December 2019 were P70,000. What amount should be reported for professional fees expense for the year ended December 31, 20197 950,000Question 3 0/1 pts Clifden Company provided the following information: 2019 2020 2021 |Cash receipts from customer From year 2019 sales 950,000, P1,200,000 From year 2020 sales 2,000,000) P 750,000 From year 2021 sales 500,000} 2,250,000) What amount was reported as accrual basis income for 2020? 400,000 Question 4 111 pts On December 31, 2019, Listowel Company had a P1,500,000 balance in the advertising expense account before any year-end adjustments: = Radio and television advertising spots broadcast during December 2019 were billed to Listowel on January 4, 2020. The invoice cost of 200,000 was paid on January 15, 2020. = Included in the P1,500,000 is P300,000 for newspaper advertising for a January 2020 sales promotional campaign What amount should be reported as advertising expense for 2020? 1,400,000Question 5 1/1 pts Dingle Company reported that the unadjusted prepaid expense on December 31, 2019 comprised the following = An opening balance of P150,000 for an insurance policy. The entity had paid an annual premium of P300,000 on July 1, 2018. = A P320,000 annual insurance premium payment July 1, 2019. = AP200,000 advance rental payment for a warehouse leased for one year beginning January 1, 2020. On December 31, 2019, what amount should be reported as prepaid expenses? 360,000, Question 6 1/1 pts Armagh Company, which began operations on January 1, 2018, has elected to use cash basis accounting for tax purposes and accrual basis accounting for the financial statements. The entity reported sales of P1,750,000 and P800,000 in the tax returns for the year ended December 31, 2019 and 2018, respectively. The entity reported accounts receivable of P300,000 and P500,000 on December 31, 2019 and 2018, respectively. What amount should be reported as sales in the income statement? 1,550,000Question 7 1/1 pts Kenmare Company is a resort located in Palawan. The entity collects cash when guests make a reservation. During December, the entity collected P600,000 of cash and recorded the receipt by recognizing unearned revenue, The entity had eared one-third of this amount and the other two-thirds will be earned next year. What is the impact of the adjusting entry at yearend? Question 8 111 pts On February 1, Blarney began a service proprietorship with an initial cash investment of P200,000. The proprietorship provided P500,000 of service in February and received full payment in March. The proprietorship incurred expenses of P300,000 in February which were paid in April, Blarney drew P100,000 during March. For the two months ended March 31, prepared under the cash basis, what amount should be reported as capital? 600,000Question 9 1/1 pts Downpatrick Company paid P1,000,000 for supplies during 2019. The full amount of P1,000,000 was debited to supplies inventory. The January 1, 2019 balance of supplies inventory was P360,000. A physical count of the supplies on hand on December 31, 2019 revealed an amount of 600,000, What is the adjusting entry for supplies expense on December 31, 20197 Debit supplies expense and credit supplies inventory P760,000. Question 10 1/1 pts During 2019, Cork Company acquired patent right and remitted royalties of P3,000,000. The entity reported prepaid royalties of P550,000 and P450,000, royalties payable of P800,000 and P750,000, respectively, on December 31, 2018 and 2019, What amount should be reported as royalty expenses for 2019? 3,050,000Question 11 0/1 pts Doolin Company reported sales revenue of P4,600,000 in the income statement for the current year: January 1 December 31 [Accounts receivable P 1,000,000} P1,300,000| [Alle fe ee 60,000 110,000] luncollectible accounts |Advances from 200,000 300,000 lcustomers The entity wrote off uncollectible accounts of P50,000 during the current year. Under cash basis of accounting, what amount should be reported as sales revenue for the current year? 4,280,000 Question 12 1/1 pts Kilkenny Company reported in the income statement for the current year P 1,100,000 of wages expense. The previous year's statement of financial position reported P100,000 of wages payable. An analysis of the payroll records showed wage payments during the year of P950,000. The previous year's adjusting entry for unpaid wages was reversed at the beginning of current year. What is the amount of the adjusting entry for accrued wages payable at yearend?250,000 Question 13 1/1 pts Limerick Company maintained the accounting records using the cash basis of accounting. During the current year, the entity collected 5,000,000 in fees from clients. On January 1, accounts receivable of P800,000 and uneamed fees of 500,000 had been recorded. On December 31, accounts receivable increased to P1,500,000 while uneamed fees increased to P900,000. Under accrual basis, what is the service revenue for the current year? 5,300,000 Question 14 1/1 pts Under accrual basis, Adare Company reported rental income for the current year at P600,000. The entity provided the following additional information regarding rental income: |Unearned rental income, January 1 P50,000 |Unearned rental income, December 31 75,000 Accrued rental income, January 1 30,000 \Accrued rental income, December 31 40,000 What total amount of cash was received from rentals in the current year?615,000 Question 15 1/1 pts Kinsale Company used the accrual basis of accounting December 31 January 1 inventory P 8,000,000 P9,000,000| Prepaid expenses 100,000 50,000 lAccounts payable 7,500,000 7,000,000 lAccrued expenses 500,000 300,000 |Cost of goods sold 15,000,000 Expenses 3,000,000 The expenses for the current year included depreciation of P200,000 and amortization of P100,000. What total amount was paid for expenses during the current year? 2,550,000 Quiz Score: 13 out of 15