The following data constitute a condensed description of the IKAWLANGBEBEKO began operations on January 1, 2016.

During the year

ended, December 31, 2017, the accounting records have been maintained
business of ABC Company for its first year of operations on a double entry basis but the cash basis of accounting has been employed.
ending December 31, 2017.
The Trial Balance prepared from these records on December 31, 2017
Cash Sales 500,000 appeared as follows:
Sales on Account 3,000,000 Cash 1,800,000
Collections from Customers 2,800,000 Land 730,000
Cash Purchases 300,000 Equipment 3,000,000
Purchase on Account 2,000,000 Purchases 3,000,000
Expenses 790,000
Payments to Trade Creditors 1,600,000 Interest Payable 180,000
Salaries paid 650,000 Note Payable 1,500,000
Office Supplies paid 200,000 Sales 5,500,000
Other Expenses paid 50,000 Share Capital 2,000,000
Retained Earnings 500,000
Interest Received 40,000
Equipment 400,000 It was decided to convert the accounting records to the accrual basis on
December 31, 2017.
Additional information:
The following information was made available:
The equipment was acquired on January 1 and has an 1. AR: 12/31/17= 500,000 12/31/2016=350,000
estimated useful life of 10 years with no residual value. 2. Included in sales was P100,000 deposited by a customer for
merchandise to be delivered in 2013.
3. AP: 12/31/17= 450,00 12/31/2016=400,000
On December 31, 2017, the following items are properly 4. Expenses include P30,000 one-year insurance dated May 1, 2017.
determined. 5. The note payable of P1,500,000 is a one year note issued and
discounted at 12% on November 1, 2017.
Accrued Salaries payable 70,000 6. It is estimated that 5% of the outstanding accounts receivable on
December 31, 2012 may prove uncollectible.
Office Supplies unused 50,000 7. Accrued Expenses: 12/31/17= 75,000
Accrued interest receivable 10,000 12/31/2016=60,000
Doubtful Accounts 90,000 8. Inventory: 12/31/17= 600,000
Ending Inventory 400,000 12/31/2016= 450,000
9. The Equipment was acquired on January 1, 2016 with 10 year
estimated useful life.
PREPARE COMPARATIVE INCOME STATEMENT for
CASH AND ACCRUAL

The following data constitute a condensed description of the IKAWLANGBEBEKO began operations on January 1, 2016. During the year
business of ABC Company for its first year of operations ended, December 31, 2017, the accounting records have been maintained
on a double entry basis but the cash basis of accounting has been employed.
ending December 31, 2017.
The Trial Balance prepared from these records on December 31, 2017
Cash Sales 500,000 appeared as follows:
Sales on Account 3,000,000
Cash 1,800,000
Collections from Customers 2,800,000 Land 730,000
Cash Purchases 300,000 Equipment 3,000,000
Purchase on Account 2,000,000 Purchases 3,000,000
Payments to Trade Creditors 1,600,000 Expenses 790,000
Interest Payable 180,000
Salaries paid 650,000 Note Payable 1,500,000
Office Supplies paid 200,000 Sales 5,500,000
Other Expenses paid 50,000 Share Capital 2,000,000
Interest Received 40,000 Retained Earnings 500,000
Equipment 400,000 It was decided to convert the accounting records to the accrual basis on
December 31, 2017.
Additional information:
The following information was made available:
The equipment was acquired on January 1 and has an 1. AR: 12/31/17= 500,000 12/31/2016=350,000
estimated useful life of 10 years with no residual value. 2. Included in sales was P100,000 deposited by a customer for
merchandise to be delivered in 2013.
On December 31, 2017, the following items are properly 3. AP: 12/31/17= 450,00 12/31/2016=400,000
4. Expenses include P30,000 one-year insurance dated May 1, 2017.
determined. 5. The note payable of P1,500,000 is a one year note issued and
discounted at 12% on November 1, 2017.
Accrued Salaries payable 70,000 6. It is estimated that 5% of the outstanding accounts receivable on
Office Supplies unused 50,000 December 31, 2012 may prove uncollectible.
7. Accrued Expenses: 12/31/17= 75,000
Accrued interest receivable 10,000 12/31/2016=60,000
Doubtful Accounts 90,000 8. Inventory: 12/31/17= 600,000
Ending Inventory 400,000 12/31/2016= 450,000
9. The Equipment was acquired on January 1, 2016 with 10 year
estimated useful life.
PREPARE COMPARATIVE INCOME STATEMENT for
CASH AND ACCRUAL