28. Unearned rent, Jan.

1 P170,000

Unearned rent, Dec. 31 85,000

Accrued rent income, Jan. 1 180,000

Accrued rent income, Dec. 31 200,000

Rental payments received 560,000

How much is the Rent income under the accrual basis accounting?

a. 455,000

b. 625,000

c. 665,000

d. 645,000

29. Payments made for income taxes P760,000

Income tax payable increased by 200,000

Deferred tax liability, Jan. 1 360,000

Deferred tax liability, Dec. 31 470,000

Deferred tax asset, Jan. 1 85,000

Deferred tax asset, Dec. 31 65,000

Income tax expense under accrual basis accounting is

a. 1,090,000

b. 960,000

c. 850,000

d. 830,000

30. Information on an entity’s operating segments is shown below:

Operating segments Total revenue Profit Identifiable assets A 1,000,000 200,000 4,000,000 B 500,000
120,000 1,000,000 C 300,000 30,000 800,000 D 500,000 50,000 1,700,000 E 200,000 60,000 800,000 F
900,000 400,000 1,000,000 Totals 3,400,000 860,000 9,300,000 The reportable segments are

a. A, B and F c. A, B, C, D and F

b. A, B, D and F d. All segments

Question 31-32

The income statement of Cagayan Corporation for 2021 included the following items:
Interest income P 2,101,000

Salaries expense 1,650,000

Insurance expense 277,200

The following balances have been excerpted from Cagayan Corporation’s statement of financial
position: 12/31/2020 12/31/2021

Accrued interest receivable P 165.000 P200,200 Accrued salaried payable 92,400 195,800

Prepaid insurance 33,000 24,200

Based on the above data, determine the following:

31. The cash received from interest during 2021 was

a. P1,900,800

b. P2,065,800

c. P2,101,000

d. P2,136,200

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32. The cash paid for salaries during 2021 was

a. P1,546,600

b. P1,557,600

c. P1,753,400

d. P1,845,800