Gerald Company had the following account balances for 2021. December 31 January 1 Accounts payable 500,000 650,000 Inventory 300,000 250,000 Accounts receivable 800,000 900,000 Prepaid expenses 400,000 600,000 All sales and purchases of inventory were on account. Depreciation expense of P900,000 was recognized during 2021. Equipment was sold during 2021 and a gain of P300,000 was recognized. The entity provided the following cash flow information for 2021: Cash collected from customers 9,500,000 Cash paid to suppliers 4,100,000 Cash paid for other expenses 1,400,000 What is the net income under accrual basis? What is the net income under cash basis?

Gerald Company had the following account balances for 2021. December 31 January 1 Accounts payable 500,000 650,000 Inventory 300,000 250,000 Accounts receivable 800,000 900,000 Prepaid expenses 400,000 600,000 All sales and purchases of inventory were on account. Depreciation expense of P900,000 was recognized during 2021. Equipment was sold during 2021 and a gain of P300,000 was recognized. The entity provided the following cash flow information for 2021: Cash collected from customers 9,500,000 Cash paid to suppliers 4,100,000 Cash paid for other expenses 1,400,000 What is the net income under accrual basis? What is the net income under cash basis?

Name: Gerald Company had the following account balances for 2021. December 3
Uploaded: 2024-03-05T11:50:36.000Z
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Description: Gerald Company had the following account balances for 2021. December 31January 1Accounts payable500,000650,000Inventory300,000250,000Accounts receivable800,000900,000Prepaid expenses400,000600,000 All sales and purchases of inventory were on account.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 6MCQ: Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense...

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