Scribd Logo
Upload

Welcome to Scribd!

  • 02 ELMS Activity 1-InterAcctng

    Uploaded by

    James Angelo Arago
    9 views1 page
    The document contains 3 cases summarizing cash basis accounting calculations for a company. Case 1 calculates cash basis purchases as $2,850,000 by taking total purchases of $3,200,000 and subtracting the change in accounts payable. Case 2 calculates cash basis income of $615,000 by adjusting accrual basis income of $600,000 for changes in unearned rental income and accrued income. Case 3 calculates cash basis expenses of $350,000 by adjusting accrual basis expenses of $375,000 for changes in prepaid royalties and royalties payable.

    Original Description:

    Original Title

    02_ELMS_Activity_1-InterAcctng

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document contains 3 cases summarizing cash basis accounting calculations for a company. Case 1 calculates cash basis purchases as $2,850,000 by taking total purchases of $3,200,000 and subtracting the change in accounts payable. Case 2 calculates cash basis income of $615,000 by adjusting accrual basis income of $600,000 for changes in unearned rental income and accrued income. Case 3 calculates cash basis expenses of $350,000 by adjusting accrual basis expenses of $375,000 for changes in prepaid royalties and royalties payable.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    9 views1 page

    02 ELMS Activity 1-InterAcctng

    Uploaded by

    James Angelo Arago
    The document contains 3 cases summarizing cash basis accounting calculations for a company. Case 1 calculates cash basis purchases as $2,850,000 by taking total purchases of $3,200,000 and subtracting the change in accounts payable. Case 2 calculates cash basis income of $615,000 by adjusting accrual basis income of $600,000 for changes in unearned rental income and accrued income. Case 3 calculates cash basis expenses of $350,000 by adjusting accrual basis expenses of $375,000 for changes in prepaid royalties and royalties payable.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Jomari Paulo Escarilla BSA501

    Case 1
    Accounts Payable, Beg 900,000
    add: Total Purchase 3,200,000
    less: Accounts Payable, End -1,250,000
    Payments - Cash Basis 2,850,000
    The Total purchase on Cash basis on
    2,850,000
    December 31, 2020

    Case 2
    Income for the Current year - Accrual basis 600,000
    Unearned rental Income, ending 75,000
    Accrued Income, beg. 30,000
    Total 705,000
    Less: Unearned rental income, beg. -50,000
    Accrued Income, ending -40,000
    Income Receive on Cash Basis 615,000

    The total income receive on Cash basis


    615,000
    should report by Patrick Company in 2020

    Case 3
    Total Expense - Accrual Basis 375,000
    Prepaid Royalties, ending 50,000
    Royalties Payable, beg. 75,000
    Total: 500,000
    Less: Prepaid Royalties, beg. -60,000
    Royalties Payable, ending -90,000
    Total Expense - Cash Basis 350,000
    Royalties Expense on Cash Basis 350,000

    You might also like