Reference no: EM133077010
Question - A single-proprietorship entity uses the single-entry method of accounting.
The company's cash records showed the following receipts and disbursements made during the year:
Receipts - accounts receivable P2,285,280; trade notes receivable P352,800; interest receivable P69,360; investment made by the owner P288,000
Disbursements - accounts payable P1,404,000; trade notes payable P423,360; interest expense P208,080; operating expenses P816,000
The following balances as of current year-end were provided:
|
|
January 1
|
December 31
|
|
Accounts Receivable
|
720,000
|
792,000
|
|
Trade Notes Receivable
|
237,600
|
403,200
|
|
Interest Receivable
|
8,640
|
25,920
|
|
Merchandise Inventory
|
255,360
|
187,500
|
|
Prepaid expenses
|
58,500
|
21,120
|
|
Office equipment
|
620,000
|
600,000
|
|
Accounts Payable
|
441,000
|
420,000
|
|
Trade Notes Payable
|
469,200
|
432,000
|
|
Interest Payable
|
10,260
|
6,000
|
|
Accrued operating expenses
|
103,680
|
159,600
|
Required - Based on the information above, determine the amount of the following for the current year, under the accrual basis:
1) Cost of Goods Sold
2) Gross Profit