Reference no: EM132941765

CRS Co. is preparing its December 31, 2018 year - end financial statements. The following information was gathered.

• The bill for December's utility costs of P30 000 was received and paid on January 10, 2019.
• A P 20 000 advertising bill was received on January 2, 2019. Of the total billing, P15 000 pertain to advertisements in December 2018.
• A lease, effective December 16, 2017, calls for a fixed rent of P100 000 per month, payable one month after the commencement of the lease and every month thereafter. In addition, rent equal to 5% of net sales over P1 000 000 per year is payable on January 31 of the following year.
• Total cash sales and collections on accounts amounted to P1 000 000. accounts receivable has a net increase of P200 000. Commissions of 15% of sales are paid on the same day cash is received from customers.

Requirement:

Problem 1: Compute for the accrued liabilities on Dec. 31, 2018.