THIRTYFIRST Company must determine the December 31, 2021 year end accruals for advertising and rent expenses. A P500 advertising received January 7, 2022, comprising costs of P375 for advertisements in December 2021 issues, and P125 for advertisements in January 2022 issues of the newspaper. A store lease, effective December 16, 2020, calls for fixed rent of P1,200 per month, payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P300,00 per calendar year is payable on January 31 of the following year. Net sales for 2021 were P550,00. In the December 31, 2021 balance sheet, THIRTYFIRTS Company should report accrued liabilities. 13,475 13,000 12,875 13,100

THIRTYFIRST Company must determine the December 31, 2021 year end accruals for advertising and rent expenses. A P500 advertising received January 7, 2022, comprising costs of P375 for advertisements in December 2021 issues, and P125 for advertisements in January 2022 issues of the newspaper. A store lease, effective December 16, 2020, calls for fixed rent of P1,200 per month, payable 1 month from the effective date and monthly thereafter. In addition, rent equal to 5% of net sales over P300,00 per calendar year is payable on January 31 of the following year. Net sales for 2021 were P550,00. In the December 31, 2021 balance sheet, THIRTYFIRTS Company should report accrued liabilities. 13,475 13,000 12,875 13,100

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6P

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On January 1, 2019, Mopps Corp. agrees to provide Conklin Company 3 years of cleaning and janitorial services. The contract sets the price at 12,000 per year, which is the normal standalone price that Mopps charges. On December 31, 2020, Mopps and Conklin agree to modify the contract. Mopps reduces the fee for the third year to 10,000, and Conklin agrees to a 4-year extension that will extend services through December 31, 2024, at a price of 15,000 per year. At the time that the contract is modified, Mopps is charging other customers 13,500 for the cleaning and janitorial service. Required: Should Mopps and Conklin treat the modification as a separate contract? If so how should Mopps account for the contract modification on December 31, 2020? Support your opinion by discussing the application to this case of the factors that need to be considered for determining the accounting for contract modifications.
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Apachi Company must determine the December 31, 2020 year-end accruals foradvertising and rent expenses. A P50,000 advertising bill was received on January7, 2021, comprising of P37,500 for advertisements in December 2020 andP12,500 for advertisements in January 2021 issued of the newspaper. A store lease effective December 1, 2020 calls for a fixed rent of P120,000 permonth payable at the beginning of each month. In addition, rent equal to 5% ofnet sales over P3,000,000 per month is payable on the 20th day of the followingmonth. Net sales for December were P5,500,000.In its December 31, 2020 statement of financial position, Apachi should reportaccrued liabilities of?
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Betina Apparael Inc., operates a retail store and must determine the proper December 31, 2019, year-end accrual for the following expenses: The store lease calls for fixed rent of P1,000 per month, payable at the beginning of the month, and additional rent equal to 6% of net sales over P200,000 per calendar year, payable on January 31 of the following year. Net sales for 2019 are P800,000. Betina has personal property subject to a city property tax. The citys fiscal year runs from June 1 to June 30 and the tax, assessed at 3% of personal property on hand at April 30, is payable on June 30. Betina estimates that its personal property tax will amount to P6,000 for the citys fiscal year ending June 30, 2020.How much accrued expenses should Betina report in its Statement of Financial Position?