01 REO HO Cash To Accrual Basis

Page 1 of 10 | AUD Handouts No.
01
CASH TO ACCRUAL BASIS OF ACCOUNTING

DARRELL JOE O. ASUNCION, CPA, MBA
CASH TO ACCRUAL BASIS OF ACCOUNTING

DARRELL JOE O. ASUNCION, CPA MBA
CONCEPTS
OUTLINE:
1. Cash basis accounting
2. Accrual basis accounting
3. Comparison of cash basis and accrual basis accounting
4. T-accounts approach
5. Guidelines in using T-account approach
6. T-accounts of accounts receivable/notes receivables/advances from customers.
7. T-accounts of allowance for bad debts
8. T-accounts of accounts payable/notes payable/advances to supplier.
9. T-accounts of merchandise inventory
10. T-accounts of property, plant and equipment
11. T-accounts of accumulated depreciation
12. T-accounts of rent receivable/unearned rent income
13. T-accounts of prepaid rent/rent payable
14. T-accounts of capital
15. T-accounts of retained earnings
16. T-accounts of net assets
Cash Basis Accounting

Cash basis accounting is a system that recognizes revenue when cash is received and expenses when cash is paid.
Accrual Basis Accounting

It is an accounting system that recognizes revenue when earned rather than when cash is received and recognizes
expenses as it is incurred rather than when cash is paid.
Comparison of Cash Basis and Accrual Basis Accounting

Items of Comparison Cash Basis Accrual Basis
Sales Includes: Includes:
• Cash sales • Cash sales
• Collection of trade • Credit sales (sale on account)
accounts receivable
• Collection of trade notes
receivable
Income other than sales Includes only those collected Includes those items earned during the period
during the period
Purchases Includes the following: Includes:
• Cash purchase • Cash purchases
• Payment of trade • Purchase on account
accounts payable
• Payment of trade notes
payable
• Payment in advance to
suppliers
Expenses, in general Includes only those Includes those items that are incurred regardless of when paid
expenses that are paid
Depreciation Depreciation is typically Depreciation is typically provided.
provided except when the
cost of equipment was
treated as expense
Bad debts No bad debts expense is Doubtful accounts are treated as bad debts.
recognized since cash basis
REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

www.reocpareview.ph REAL EXCELLENCE ONLINE CPA REVIEW
(074) 665 6774 0916 840 0661 support@reocpareview.ph MAY 2021 CPA REVIEW SEASON
Page 2 of 10 | AUD Handouts No. 01

CASH TO ACCRUAL BASIS
does not recognize

receivables. Although some
problem may give an
indication that the accounts
written off were charged to
bad debts expense.
T-ACCOUNTS APPROACH
In order to compute for the cash payments or collections for certain account, it is suggested that the T-account approach
will be used on the following:
1) Accounts receivable/notes receivables/advances from customers;
2) Allowance for doubtful accounts;
3) Accounts payable/notes payable/advances to supplier;
4) Merchandise inventory;
5) Property, plant and equipment;
6) Accumulated depreciation;
7) Rent receivable/Unearned rent income;
8) Prepaid rent/Rent payable;
9) Capital;
10) Retained earnings;
11) Net assets.
PROBLEM NO. 1
As part of your engagement to audit the financial statements of GoodNews Co for the year ended December 31, 2020,
you were able to gather the following data:
12/31/2020 12/31/2019
Accounts receivable-trade 3,200,000 2,000,000
Notes receivable - trade 500,000 1,250,000
Allowance for bad debts 190,000 225,000
Unpaid merchandise invoices 2,316,000 1,310,500
Accrued salaries 42,500 62,500
Office supplies 17,500 37,500
Accrued office supplies expense 7,125 20,000
Prepaid rent 12,500 -
Unexpired rent - 20,500
Merchandise inventory 1,125,000 1,560,000
Machinery, net 5,500,000 7,500,000
Additional information:
 Amount collected from customers, ₱5,000,000, excluding a ₱50,000 collection from a previously written-off account.
Write-off of receivables during the year amounted to ₱175,000.
 Sales returns (all prior to collections) amounted to ₱62,500 while sales discounts granted to customers amounted
to ₱112,500.
 Total payments to suppliers of merchandise amounted to ₱4,125,000. Purchase returns (all prior to payments
amounted to ₱150,000).
 Salaries, Office supplies and Rent payments during the year were at ₱1,025,000, ₱150,000 and ₱50,000,
respectively.
 The only transaction apart from the depreciation for the year, affecting machinery’s net book value was the
acquisition at the beginning of the year costing ₱2,500,000.
Determine the accrual balances of the following as of December 31, 2020:

1. Gross Sales
2. Gross Purchases
3. Salaries expense
4. Office supplies expense
5. Net income or loss


PROBLEM NO. 2
1. On January 1 of the current year, the capital balance of Jessa Co was ₱3,400,000 and on December 31, the capital
was ₱4,800,000. During the year, Jessa withdrew merchandise costing ₱200,000 and with sales value of ₱360,000,
and paid a ₱2,000,000 note payable of the business with interest of 12% for six months with a check drawn on a
personal checking account. What was the net income or loss for the year?
a. 520,000 income c. 360,000 income
b. 520,000 loss d. 360,000 loss
2. Beverlyn Company provides the following information for the year 2009:
January 1 December 31
Total Assets 10,000,000 15,000,000
Total liabilities 4,000,000 7,000,000
Share capital 3,000,000
Share Premium 1,000,000
Retained earnings ? ?
During 2009 the company issued share capital of ₱2,000,000 at a premium of ₱400,000. Dividends of ₱1,600,000 were
paid on December 31, 2009.
What was the net income or loss for the year ended December 31, 2009?
a. 1,200,000 income c. 3,600,000 income
b. 1,200,000 loss d. 3,600,000 loss
3. The following changes in account balances of Analiza Company during the current year are presented below:
Increase
Assets 3,560,000
Liabilities 1,080,000
Share capital 2,400,000
Share premium 240,000
Assuming there were no changes in retained earnings other than for a dividend payment of ₱520,000, what is the net
income for the current year?
a. 2,480,000 c. 360,000
b. 1,960,000 d. 920,000
4. Changes in the accounts of Cherry Lyn Company for the current year are as follows:
Increase
(Decrease)
Cash 3,000,000
Accounts receivable 7,000,000
Inventory 7,800,000
Investments (2,000,000)
Equipment 6,000,000
Accounts Payable (1,600,000)
Bonds payable 4,000,000
During the year, Cherry Lyn sold 200,000 shares with ₱20 par value for ₱30 per share and received cash in full. Dividend
of ₱9,000,000 was paid in cash during the year. Cherry Lyn borrowed ₱8,000,000 from the bank and made interest payment
of ₱1,200,000. Cherry Lyn had no other loan payable. Interest of ₱800,000 was payable at December 31, Interest payable
at January 1 was ₱200,000. Equipment of ₱4,000,000 was donated by a shareholder during the year. What was the net
income for the current year?
a. 18,400,000 c. 9,800,000
b. 9,600,000 d. 8,600,000
5. Changes in the accounts of Neon Co. for 2015 are as follows:

Increase
(Decrease)
Cash 500,000
Accounts receivable (4,600,000)
Allowance for bad debts (460,000)
Merchandise inventory 4,800,000
Investment in associate 3,000,000
Property, plant and equipment 2,400,000


Accumulated depreciation 800,000

Notes payable 2,600,000
Bonds payable (2,800,000)
Discount on bonds payable (600,000)
Ordinary share capital 3,900,000
Share premium 200,000
Revaluation surplus 2,600,000
Treasury shares 320,000
Additional information:
• On December 31, 2015, Neon Co. declared Cash dividends amounting to ₱500,000 and share dividends amounting to
₱800,000. Also during the year, the company appropriated retained earnings for the retirement of bonds amounting to
₱100,000.
• During the year, Neon obtained a bank loan of ₱2,000,000 and paid off loan amortization of ₱1,600,000 and interest of
₱100,000. Interest of ₱180,000 is accrued on December 31, 2015. There was no interest payable at the end of 2014.
In 2015, Neon Company acquired treasury shares from its existing shareholders.
Required: Compute for the net loss during the year.

a. 1,000,000 c. 1,900,000
b. 1,100,000 d. 2,000,000
6. Chavez started a retail merchandise business on January 1, 2008. During the fiscal year ended December 31, 2008,
the business paid trade creditors ₱1,000,000 in cash and suffered a net loss of ₱175,000. Among the ledger account
preclosing balances of December 31, 2008 were the following:
Accounts receivable 300,000

Accounts payable 375,000
Capital (total investment in cash) 1,000,000
Expenses (paid in cash) 50,000
Merchandise (unadjusted debit balances) 350,000
There were no withdrawals. All sales and purchases were on credit. The merchandise account is debited for purchases
and credited for sales.
1. Total sales for the year amounted to?

a. 1,375,000 c. 1,325,000
b. 1,025,000 d. 350,000
2. What was the cash balances on December 31, 2008?

a. 675,000 ` c. 725,000
b. 1,000,000 d. 1,725,000
3. What was the merchandise inventory on December 31, 2008?

a. 350,000 c. 375,000
b. 225,000 d. 0
PROBLEM NO. 3
Your audit of Pura Company disclosed that your client kept very limited records. Purchases of merchandise were paid for
by check, but most other items were out of cash receipts. The company’s collections were deposited weekly. No record
was kept of cash in the bank, nor was a record kept of sales. Accounts receivable were recorded only by keeping a copy
of the ticket, and this copy was given to the customer when he paid his account.
On January 2, 2006 started business and issued common stock, 108,000 shares with ₱100 par, for the following
considerations:
Cash ₱ 900,000
Building (useful life, 15 years) 8,100,000
Land
2,700,000
₱11,700,000
An analysis of the bank statements showed total deposits, including the original cash investment of ₱6,300,000. The
balance in the bank statement on December 31, 2006, was ₱450,000, but there were checks amounting to ₱90,000 dated


December but not paid by the bank until January 2007. Cash on hand on December 31, 2006 was ₱225,000 including
customers’ deposit of ₱135,000
During the year, Pura Company borrowed ₱900,000 from the bank and repaid ₱225,000 and ₱45,000 interest.
Disbursements paid in cash during the year were as follows:
Utilities ₱180,000
Salaries 180,000
Supplies 360,000
Dividends 270,000
₱990,000
An inventory of merchandise taken on December 31, 2006 showed ₱1,359,000 of merchandise.
Tickets for accounts receivable totaled ₱1,620,000 but ₱90,000 of that amount may prove uncollectible.
Unpaid suppliers invoices for merchandise amounted to ₱630,000.
Equipment with a cash of ₱720,000 was purchased in early January on a one-year installment basis. During the year,
checks for the down payment and all maturing installments totaled ₱801,000. The equipment has a useful life of 5 years.
Based on the above and the result of your audit, determine the following :(Disregard income taxes)
1. Payments for merchandise purchases in 2006

a. ₱4,869,000 c. ₱3,654,000
b. ₱3,879,000 d. ₱3,969,000
2. Collections from sales in 2006

a. ₱6,480,000 c. ₱5,580,000
b. ₱7,380,000 d. ₱4,500,000
3. Net income for the year ended December 31, 2006

a. ₱2,430,000 c. ₱2,655,000
b. ₱1,440,000 d. ₱2,340,000
4. Stockholders’ equity as of December 31, 2006

a. ₱13,860,000 c. ₱14,085,000
b. ₱12,870,000 d. ₱13,770,000
5. Total assets as of December 31, 2006

a. ₱14,175,000 c. ₱14,374,800
b. ₱14,085,000 d. ₱14,310,000
PROBLEM NO. 4
You were assigned to audit the books of KIBUNGAN CO for the period ended December 31, 2017. The bookkeeper of the
client provided you the following summarized data taken directly from its records:
Cash Sales ₱7,500,000

Total cash collected from charge customers 2,550,000
Cash purchases of merchandise 5,100,000
Credit purchases of merchandise 1,200,000
Expense paid in cash 2,250,000
Accounts receivable, January 1 750,000
Accounts receivable, December 31 1,200,000
Bad debt expense 100,000
Recovery of bad debts 25,000
Allowance for doubtful accounts, January 1 125,000


Allowance for doubtful accounts, December 31 175,000

Accounts payable, January 1 450,000
Accounts payable, December 31 600,000
Merchandise inventory, January 1 1,500,000
Merchandise inventory, December 31 1,800,000
Accrued expenses, December 31 60,000
Prepaid expenses, December 31 90,000
Furniture and equipment, at cost 3,000,000
Interest received 120,000
Accrued interest income, January 1 30,000
Purchase returns 120,000
Purchase discounts 210,000
Additional Information:
The furniture and equipment which had an estimated useful life of 10 years were acquired on July 1, 2014 and were
estimated to have a 10% salvage value based on cost. The company uses the double declining balance method in
computing the depreciation.
Required:
1. What is the correct net sales for the year?
a. 10,575,000 c. 10,475,000
b. 10,550,000 d. 9,675,000
2. What is the correct cost of sales for the year?

a. 6,000,000 c. 5,790,000
b. 5,670,000 d. 345,600
3. How much is the correct depreciation expense for the year?

a. 384,000 c. 311,040
b. 307,200 d. 345,600
4. What is the net income for the year?

a. 2,244,400 c. 2,304,400
b. 2,404,400 d. 2,214,400
PROBLEM NO. 5
Roxas Co. is engaged in a small export business. The company maintains limited records. Most of the company’s
transactions are summarized in a cash journal; non-cash transactions are recorded by making memo entries. The following
are abstracted from the company’s records:
Accounts receivable, increase ₱1,480,000
Notes receivable, decrease 800,000
Accounts payable, decrease 600,000
Notes payable-trade, increase 800,000
Notes payable – bank, increase 1,200,000
Sales return (₱200,000 was refunded) 320,000
Sales discounts 80,000
Purchase returns (₱120,000 was refunded) 320,000
Purchase discounts 140,000
Accounts written-off 240,000
Recovery of accounts written-off 72,000
Cash sales 1,200,000
Cash purchases 1,000,000
Cash received from account customers 6,000,000
Cash payment to trade creditors 4,800,000
Requirements:
1. What are the correct gross sales on account?
a. 4,752,000 c. 7,048,000


b. 6,432,000 d. 7,248,000
2. What are the total gross sales?

a. 8,448,000 c. 7,632,000
b. 8,248,000 d. 5,952,000
3. What are the total net sales?

a. 5,552,000 c. 7,848,000
b. 7,232,000 d. 8,048,000
4. What are correct gross purchases on account?

a. 5,460,000 c. 4,260,000
b. 5,340,000 d. 4,140,000
5. What are the gross purchases?

a. 5,140,000 c. 5,752,000
b. 5,260,000 d. 6,340,000
6. What are the net purchases?

a. 5,880,000 c. 5,000,000
b. 5,292,000 d. 4,900,000
PROBLEM NO. 6
Betsy Corporation began business operations on January 2, 2006. During 2006 the accounting records are kept on a double
entry system but on the cash basis of accounting.
On December 31, 2006, the trial balance prepared from these records appeared as follows:
Cash 840 000
Purchases 4,200 ,000
Expenses 560 000
Notes payable 200,000
Sales 4,400,000
Common stock 1,000,000
5,600,000 5,600,000
The management decided to use the accrual and other data as of December 31, 2006 are as follows:
A. Merchandise inventory on December 31, at cost, ₱500,000.
B. On December 31, accounts receivable amounted to ₱100,000 and accounts payable totaled ₱80,000.
C. Accrued expenses on December 31, ₱20,000.
D. The purchases included merchandise in the amount of ₱10,000 bought for the president. He had not
reimbursed the company.
E. Included in the sales was ₱25,000 deposit given by a customer for merchandise to be delivered in 2007.
F. It is estimated that 5% of the outstanding receivables on December 31, may turn out to be uncollectible.
G. Expense include the following:
a. ₱25,000 for office supplies of which ₱5,000 is unused as of December 31.
b. ₱100,000 for the purchase of equipment on July 1, 2006. It was estimated that this property would have an
estimated useful life of 10 years, without salvage.
c. ₱20,000 for a one-year insurance premium on a fire insurance policy dated October 1, 2006.
H. The note payable balance consists of two notes; a non-interest bearing note of ₱100,000, dated August 1,
2006, due on February 1, 2007 and a one-year note of ₱100,000, dated September 1, 2006, bearing an
interest of 12% payable at maturity.
QUESTIONS:
Based on the above and the result of your audit, determine the accrual balance of the following:
1. Sales
a. 4,400,000 c. 4,425,000
b. 4,375,000 d. 4,475,000
2. Cost of sales
a. 4,270,000 c. 3,770,000
b. 4,370,000 d. 3,970,000


3. Total expenses
a. 465,000 c. 469,000
b. 470,000 d. 474,000
4. Current Assets
a. 1,465,000 c. 1,370,000
b. 1,445,000 d. 1,350,000
5. Total Assets
a. 1,560,000 c. 1,470,000
b. 1,540,000 d. 1,445,000
PROBLEM NO. 7
Wiley Company, a calendar-year sole proprietorship, maintained its books on the cash basis during the year.
WILEY is in the process of negotiating a bank loan to finance the planned expansion of its business. The bank is requesting
2021 financial statements prepared on the accrual basis of accounting from WILEY. As WILEY’s external auditor, you were
called upon to assist in preparing the financial statements. The following information were obtained during the course of
your engagement:
Wiley Company
TRIAL BALANCE
December 31, 2021
Debits Credits
Cash 200,000
Accounts receivable, 12/31/2020 141,750
Inventory, 12/31/2020 542,500
Furniture & fixtures 1,034,250
Leasehold improvements 393,750
Accumulated depreciation, 12/31/2020 283,500
Wiley, Drawings -
Wiley, Capital, 12/31/2020 1,066,275
Sales 5,713,750
Purchases 2,669,500
Salaries expense 1,522,000
Taxes and licenses 108,500
Insurance expense 76,125
Rent expense 299,250
Utilities expense 110,250
Living expenses 114,400
7,212,275 7,212,275
Additional Information:
1. At December 31, 2021, amounts due from customers totaled ₱207,500.
2. Based on the analysis of the above receivables, ₱10,375 may prove uncollectible.
3. Unpaid invoices for plant purchases totaled ₱266,875 and ₱148,750 at December 31, 2021 and December 31,
2020, respectively.
4. The inventory totaled ₱637,000 based on a physical count of the goods at December 31, 2021. The inventory was
priced at cost, which approximates market value.
5. On May 1, 2021, WILEY paid ₱76,125 to renew its comprehensive insurance coverage for one year. The premium
on the previous policy, which expired on April 30, 2021, was ₱68,300.


6. On January 2, 2021, WILEY entered into a twenty-year operating lease for the vacant lot adjacent WILEY’s retail
store used as a parking lot. As agreed in the lease, WILEY paved and fenced in the lot at a cost of ₱393,750. The
improvements were completed on April 1, 2021, and estimated to have a useful life of fifteen years. No provision
for depreciation has been recorded. Depreciation on furniture and fixtures was ₱105,000 for 2021.
7. Accrued expenses at December 31, 2021 and 2020 were as follows:

2021 2020
Taxes and licenses ₱ 16,875 ₱ 10,125
Utilities 18,000 12,375
₱34,875 ₱22,500
8. WILEY is being sued for ₱2,000,000. The coverage under the comprehensive insurance policy is limited to
₱1,250,000. WILEY’s attorney believes that an unfavorable outcome is probable and that a reasonable estimate
of the settlement is ₱1,500,000.
9. The salaries account includes ₱20,000 per month paid to the proprietor. WILEY also receives ₱2,200 per week for
living expenses.
QUESTIONS:
Determine the balances of the following under the accrual basis of accounting as of December 31, 2021:
1. Current Assets
2. Noncurrent Assets
3. Current liabilities
4. Noncurrent liabilities
5. Total expenses
6. Net Income
7. WILEY, Capital
PROBLEM NO. 8
The following data are obtained from a single entry set of books kept by the proprietor of SHED CIRIACO Store for 2021.
December 31 January 1
Cash 900,000 600,000
Notes receivable 600,000 200,000
Accounts receivable 1,000,000 800,000
Merchandise inventory 500,000 800,000
Equipment 550,000 600,000
Notes payable 250,000 350,000
Accounts payable 500,000 600,000
Accrued interest payable 20,000 40,000
Unearned rent income 20,000 60,000
The cashbook shows the following information:
Balance, January 1 600,000

Receipts:
Accounts receivable 1,500,000
Notes receivable 500,000
Cash sales 400,000
Purchase returns received from suppliers 20,000
Rent income 80,000
Sale of equipment costing
₱100,000 and with book value of
₱50,000 60,000
Investment 300,000 2,860,000
Total 3,460,000
Payments:
Sale returns refunded to customers 10,000
Notes payable 650,000
Cash purchases 300,000
Interest expense 50,000


Expenses 400,000
Equipment 200,000
Withdrawals 200,000 2,560,000
Balance, December 31 900,000
Supplementary information:
a. Sales discounts granted to customers 50,000
b. Sales returns made by customers (including the ₱10,000 refund to the customer) 150,000
c. Accounts receivable written off as uncollectible 30,000
d. Purchase discounts on accounts payable paid 40,000
QUESTIONS:
Based on the above and the result of your audit, determine the following as of December 31, 2021:
1. Total gross sales
2. Total gross purchases
3. Cost of sales
4. Interest expense
5. Rent income
COMMITMENT TO THE SUCCESS OF PASSING THE CPA BOARD EXAMINATION.

I commit myself today to do the best I can in passing the CPA board examination. I will do whatever I can to:
Read all the necessary textbooks, reviewers and other handouts.
Study and solve all problem-solving and theory questions from _ to everyday starting today for all the board
exam subjects.
Although the road may get bumpy and will require lots of sacrifice, I will do what it takes and persevere.
Signature:_ Date:_
(Affix your signature as a sign of your whole-hearted, not half-hearted, commitment.)
“Whatever you do, work at it with all your heart, as though you were working for the Lord.”—Colossians 3:23, Today’s
English Version
WHEN OUR ATTITUDES OUTDISTANCE OUR ABILITIES, EVEN THE IMPOSSIBLE BECOMES POSSIBLE.” JOHN
MAXWELL
YOUR ATTITUDE DETERMINES YOUR ALTITUDE.
“DISCIPLINE IS DOING THE THINGS YOU DON’T WANT TO DO IN ORDER FOR YOU TO DO WHAT YOU WANT TO
DO” JOHN MAXWELL
--- END OF HANDOUTS ---


01 REO HO Cash To Accrual Basis

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01 REO HO Cash To Accrual Basis

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Page 1 of 10 | AUD Handouts No.

CASH TO ACCRUAL BASIS OF ACCOUNTING

CASH TO ACCRUAL BASIS OF ACCOUNTING

Cash Basis Accounting

Accrual Basis Accounting

Comparison of Cash Basis and Accrual Basis Accounting

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

DARRELL JOE O. ASUNCION, CPA, MBA

does not recognize

Determine the accrual balances of the following as of December 31, 2020:

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

DARRELL JOE O. ASUNCION, CPA, MBA

5. Changes in the accounts of Neon Co. for 2015 are as follows:

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

DARRELL JOE O. ASUNCION, CPA, MBA

Accumulated depreciation 800,000

Required: Compute for the net loss during the year.

Accounts receivable 300,000

1. Total sales for the year amounted to?

2. What was the cash balances on December 31, 2008?

3. What was the merchandise inventory on December 31, 2008?

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

DARRELL JOE O. ASUNCION, CPA, MBA

Disbursements paid in cash during the year were as follows:

An inventory of merchandise taken on December 31, 2006 showed ₱1,359,000 of merchandise.

Unpaid suppliers invoices for merchandise amounted to ₱630,000.

1. Payments for merchandise purchases in 2006

2. Collections from sales in 2006

3. Net income for the year ended December 31, 2006

4. Stockholders’ equity as of December 31, 2006

5. Total assets as of December 31, 2006

Cash Sales ₱7,500,000

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

DARRELL JOE O. ASUNCION, CPA, MBA

Allowance for doubtful accounts, December 31 175,000

2. What is the correct cost of sales for the year?

3. How much is the correct depreciation expense for the year?

4. What is the net income for the year?

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

DARRELL JOE O. ASUNCION, CPA, MBA

2. What are the total gross sales?

3. What are the total net sales?

4. What are correct gross purchases on account?

5. What are the gross purchases?

6. What are the net purchases?

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

DARRELL JOE O. ASUNCION, CPA, MBA

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

DARRELL JOE O. ASUNCION, CPA, MBA

7. Accrued expenses at December 31, 2021 and 2020 were as follows:

The cashbook shows the following information:

Balance, January 1 600,000

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

DARRELL JOE O. ASUNCION, CPA, MBA

COMMITMENT TO THE SUCCESS OF PASSING THE CPA BOARD EXAMINATION.

YOUR ATTITUDE DETERMINES YOUR ALTITUDE.

REO CPA REVIEW PHILIPPINES Effectiveness. Efficiency. Convenience

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