Prac 1 Cash Basis
Prac 1 Cash Basis
Prac 1 Cash Basis
CASH BASIS
Problem 63-1 (AICPAAdaPted)
The following information pertains to Spee Company's sales
curent year:
Cash sales
Gross
Credit sales
Gross
Discounts
On January
I,
PI
,000,000' On December
"mi"..*'"*"a
l. s,000,000
b. 4,750,000
c. 4,250,000
d. 1,900,000
Solution
6i-1
Answer a
1,000,0fl
3,000,0fl
4,000,o(tr
Total
December 31
Sales discounts
Collections
100,000)
7s0,000
150,000
900,ofl
3,100,0fl
1,900,0fl
5,000,00
anr
follows:
receivable
Accounts
Allowance for uncollectible
Zeta wrote
2,000,000
100,000
3,000,000
150,000
12l3u20t0 t2l3uzall
1,000,000 1,300,000
accounts 60,000
a.
b.
c.
d.
4,900,000
4,350,000
4,300,000
4,280,000
2011
2010
Total
Less: Accounts receivable - l2l3ll201l 1,300,000
20,000
Writeoff
Collections - cash basis sales revenue
1,000,000
3,000,000
:ember
3l
4,000,000
750,000
150,000
900,000
3,100p00
0,000)
1,900,000
s,000,000
r086
110,000
1,000,000
4,600,000
5,600,000
4,280,000
1087
Prob
400,000
3,000,000
Jacqu
Total
Less: Accounts receivable - December 31, 201I
3,400,000
485,000
Allou
Collections
Cash sirles
2,915,000
200,000
3,r 15,000
Accou
Cash r
Bad dr
AccruaI sales
Accounts receivable:
January I
December 3l
Advances from customers:
At the
January
December
Nct
ar
Durin
Sales
5,000,000
800,000
500,000
300,000
400,000
31
accour
accour
Under
the cur
a.
b.
c.
d.
a. 5,400,000
b. s,300,000
c. 4,800,000
d.
Accol
2,7
2,2
3,5
3,3
Solutio
4,600,000
Accoun
Sales or
5,000,000
800,000
400,000
Total
Less: Accounts receivable - December 3l
Advances from customers - January 1
6,200,000
500,000
300,000
800,000
5,400,000
1088
Total
Accoun
Accoun
Collecti
Cash sa
Total
sa
Problem 63-5
l,2010
400,000
3,000,000
3,400,000
485,000
Accounts receivable
Allowance for doubtful accounts
Nct accounts receivable
2;915,000
200,000
l,l119oo
fl1"t)
1,000,000
80,000
920,000
120,000
500,000
3,000,000
200,000
a balance rn
accounts.
Under the cash basis, what amount should be reported as sales for
the current year?
a.
b.
c.
d.
2,700,000
2,200,000
3,500,000
3,320,000
January I
1,000,000
3,000,000
Total
5,000,000
800,000
400,000
rber 3 I
31
i
mber
anuary
6,200,000
500,000
300,000
Total sales
800,000
3l
- cash basis
120p00)
2,200,000
500,000
2,700,000
5,400,000
88
4,000,000
(1,680,000)
1089
Sales
t0,000.q
Operating expenses
5,300.of,
3,800.m
Prepaid operating
expenses
Accounts payable
Inventory
Accounts receivable
December
3l
Januar-r
1,000,000
700.0D
r,350,000 l,2O0,o
r,)(r0,000 2,too.on
r,400,000 1,375.m
fr
a. 5,550,000
b. 5,700,000
c.
5,850,000
d.5,150,000
Solution 63_6 Answer
a
Inventory Januarv I
Purchases under
acciual basis (SeUEEZE)
available for sale
_Goods
lnventory : December
2,t00.o
5.700.m
7,800-0
3l
5,300.(D
Accounts payable _ Januarv
I
rurchases _ accrual
basis
Total
Accounts payable _
December 3l
Cash paid for purchases _
cash basis
1090
t,200.0
5,700-r
6,9@,o
I
5,550-o
December
31
January
1,000,000 700,000
i,350,000 1,200,000
2,500,000 2,100,000
1,400,000 r,375,000
210,000
875,000
245,000
910,000
875,000
c. 840,000
d. 665,000
a.
b.
875,000
245,000
G]9,099)
910,000
)UEEZE)
s.700.000
7,800,000
er00499
1,200,000
5,700,000
6,900,000
a.
5,300,000
cll9!gq)
sls
s,5s0,000
3,270,000
b. 2,270,000
c.
d.
2,130,000
2,230,000
1091
3,200,000
(1,000,000)
200,000
(
(
1s0,000)
100,000)
120,000
2,270,000
201I
Accounts receivable
Interest receivable
Inventories
Prepaid insurance
Accounts payable
Accrued expenses
Net sales
Interest revenue
Cost ofgoods sold
Insurance expense
Other expenses
201 0
4,500,000
5,000,000
7,500,000
7,000,000
300,000
20,000 50,000
8,000,000 9,000,000
100,000 50,000
500,000
2s,000,000
150,000
15,000,000
1,000,000
2,000,000
What total amount was paid for expenses during the current year?
2,150,000
2,850,000
2,700,000
d. 3,1s0,000
a.
b.
c.
1092
(
(
3l
1s0,000)
i00,000)
120,000
2,270,000
Insurance expense
Other expenses
Depreciation
Amortization
Prepaid insurance - 201 I
Prepaid insurance - 2010
Accrued expenses - 201 I
Accrued expenses - 2010
1,000,000
2,000,000
( 200,000)
( 100,000)
100,000
( s0,000)
( 500,000)
300,000
7,500,000
500,000
25,000,000
2010
5,000,000
50,000
9,000,000
50,000
7,000,000
300,000
150,000
15,000,000
1,000,000
2,000,000
s during the current year?
2,550,000
income is as follows:
50,000
75,000
30,000
40,000
What total amount of cash was received from rental in the
current
year?
585,000
5,000
c. 625,000
d. 655,000
a.
b.
61
cash basis
600,000
50,000)
75,000
30,000
(l9,0oo)
615,000
1093
On February
I of the cu
*itr*flrgt,frly*flffiipffi
;'{.,,.ffi f.;.",#.i,td"15j;i,r.:"i,,ffi lil,*m",-"*
a; 100,000
b. 300,000
c. 600,000
d. 700,000
Solution 63- I I Answer
c
Capital - Februarv I
Cash basis inconr for
February and March
Total
Withdrawals during
March
200,000
500,000
700,000
Capital-March3l
(100,000)
probtem 63-12
-qA{A
(pHILCpAAdapted)
*gms*ffi
a. 4,000.000
u. r,soo,ooo
-r<etmsonDecember:l,zoil:
c.4,150,000
d.4,r00,000
1094
b
Solution 63-12 Answer
d)
of accounting,
d as capital?
3,so0poo
Capital - JanuarY I
Cash basis net income
600,000
4,100,000
Total
Drawings
3,900,000
Capital - December 31
companY:
sales
Sales on account
Cash Purchases
Credit Purchases
Expenses Paid
Accounts receivable - J:"uu1l-,,
Jl
Accounts receivable-- December
Cash
nd March
200,000
500,000
700,000
q!q!00)
600,000
ted)
I 31
lffi:::ff:iJffre-Januarv
ilffi;;ie - December
2,5oopoo
850,000
1,700P00
400;000
750,000
250,000
300,000
iiO,OOO
200,000
500,000
600,000
20,000
30,000
1,000,000
40,000
1o'ooo
2o'ooo
The
was acquiredfor P200'000'
On July l, 2011' an equipment
year'
to be paid after one
i"r., J*i'so,oriO down and isthel0balance
years with no residual value'
The useful life of equipment
cash basis?
What is the net income under
550,000
b. s70,000
c. 540,000
d. 640,000
a.
109s
94
200,000)
Total sales
llqgga
Credit purchases
Accounts payable _ Januarv I
Accounts payable _ Decemier
400,000
1s0,000
3I
(_2p0,99Q)
3s0,000
r,700,000
cash basis
2,0s0,000
Depreciation on equipment
on J
o"o1^1'^"1
91
300.000)
800,000
2,500.000
- cash basis
Total purchases
850,000
250,000
80,000
(200,000/ t0x6/12)
10,000
Total depreciation
2qq99
Sales
3,300,000
Cost of sales:
Inventory _ Januarv I
Purch ases
500,000
2,050,000
2,550,000
Gross income
Expenses paid
1,950,000
(
(
Depreciation
Interest received
Net income
600,000)
1,350,000
750,000)
90,000)
40.000
cash basis
550,000
1096