12) MNO Company operates a retail store and must determine the proper December 31, 2020, year-end accrual for the following expenses: • The store lease calls for fixed rent of P6,000 per month, payable at the beginning of the month, and an additional rent equal to 6% of net sales over P1,250,000 per calendar year payable on January 31 of the following year. Net sales for 2020 were P2,250,000. • An electric bill of P4,250 covering the period December 17, 2020 through January 16, 2021 was received January 23, 2021. • A P2,000 telephone bill was received on January 2, 2021 covering service in advance for January 2021 worth P750 and local & toll calls for December 2020 worth P1,250. In its December 31, 2020 statement of financial position, what amount of accrued liabilities should MNO Company report?

12) MNO Company operates a retail store and must determine the proper December 31, 2020, year-end accrual for the following expenses: • The store lease calls for fixed rent of P6,000 per month, payable at the beginning of the month, and an additional rent equal to 6% of net sales over P1,250,000 per calendar year payable on January 31 of the following year. Net sales for 2020 were P2,250,000. • An electric bill of P4,250 covering the period December 17, 2020 through January 16, 2021 was received January 23, 2021. • A P2,000 telephone bill was received on January 2, 2021 covering service in advance for January 2021 worth P750 and local & toll calls for December 2020 worth P1,250. In its December 31, 2020 statement of financial position, what amount of accrued liabilities should MNO Company report?

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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