Gire Lim, a retired CPA-lawyer, formed GIRE Musical Trading on July 1, 2021, investing his retirement...

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Gire Lim, a retired CPA-lawyer, formed GIRE Musical Trading on July 1, 2021, investing his retirement pay of P800, 000 in the business. To cut on operating expenses, he did not hire an accountant; as a consequence, his accounting records were incomplete. On January 1, 2022, his cash balance was P820, 000 and on December 31, 2022, it was P860, 000. He wanted to have an idea of the result of his operations for the year ended December 31, 2022. The following information and other data were gathered for the year 2022: Accounts receivable - trade Notes receivable Accrued interest on notes receivable Inventories Prepaid rent Delivery equipment (at cost) Furniture and fixtures (at cost) Rent deposit Other assets Accounts payable-trade Notes payable (delivery equipment) Accrued interest on notes payable Accrued expense (excluding rent) Cash payments for: Merchandise purchases Interest on notes payable Trade payables Notes payable (delivery equipment) Operating expenses Gire Lim, drawing Total Gire Lim was able to arrange with the owner of the building that the rental deposit be reduced by 50% and the amount applied against rentals in 2022. From the 2022 cash memoranda of Gire Lim, you were able to extract the following: Cash received from: Sales Interest on Notes receivable Collections of accounts receivable Total Jan 1 P260, 000 1. Total sales 2. Cost of sales 40,000 1,600 350, 600 3. Total operating expenses 4. Net profit 5. Gire Lim, Capital on Dec. 31, 2022 12,000 240,000 100, 000 24,000 2,000 А P1, 976, 000 P1, 849, 800 P959, 000 P233, 200 P813, 200 780,000 200, 000 24,000 16,000 You have established that fixes assets have not been depreciated since they were acquired on July 1, 2021. Estimated useful life of these assets is ten years. (use straight line method). Dec 31 P340,000 30,000 1,200 560, 800 9,000 240,000 100, 000 12,000 2,000 960, 000 120,000 16,000 20,000 B P3, 330, 000 P1, 700, 000 P 978,000 P198, 800 P998, 800 P 760,000 8,000 2,656, 000 3,424,000 P 420,000 50,000 1,880,000 80,000 940,000 24,000 P3, 394,000 с P3, 496, 000 P2, 120, 000 P985, 000 P768, 600 P988, 000 D P2, 736,000 P2, 269, 800 P993, 000 P213, 800 P1, 039, 000 Gire Lim, a retired CPA-lawyer, formed GIRE Musical Trading on July 1, 2021, investing his retirement pay of P800, 000 in the business. To cut on operating expenses, he did not hire an accountant; as a consequence, his accounting records were incomplete. On January 1, 2022, his cash balance was P820, 000 and on December 31, 2022, it was P860, 000. He wanted to have an idea of the result of his operations for the year ended December 31, 2022. The following information and other data were gathered for the year 2022: Accounts receivable - trade Notes receivable Accrued interest on notes receivable Inventories Prepaid rent Delivery equipment (at cost) Furniture and fixtures (at cost) Rent deposit Other assets Accounts payable-trade Notes payable (delivery equipment) Accrued interest on notes payable Accrued expense (excluding rent) Cash payments for: Merchandise purchases Interest on notes payable Trade payables Notes payable (delivery equipment) Operating expenses Gire Lim, drawing Total Gire Lim was able to arrange with the owner of the building that the rental deposit be reduced by 50% and the amount applied against rentals in 2022. From the 2022 cash memoranda of Gire Lim, you were able to extract the following: Cash received from: Sales Interest on Notes receivable Collections of accounts receivable Total Jan 1 P260, 000 1. Total sales 2. Cost of sales 40,000 1,600 350, 600 3. Total operating expenses 4. Net profit 5. Gire Lim, Capital on Dec. 31, 2022 12,000 240,000 100, 000 24,000 2,000 А P1, 976, 000 P1, 849, 800 P959, 000 P233, 200 P813, 200 780,000 200, 000 24,000 16,000 You have established that fixes assets have not been depreciated since they were acquired on July 1, 2021. Estimated useful life of these assets is ten years. (use straight line method). Dec 31 P340,000 30,000 1,200 560, 800 9,000 240,000 100, 000 12,000 2,000 960, 000 120,000 16,000 20,000 B P3, 330, 000 P1, 700, 000 P 978,000 P198, 800 P998, 800 P 760,000 8,000 2,656, 000 3,424,000 P 420,000 50,000 1,880,000 80,000 940,000 24,000 P3, 394,000 с P3, 496, 000 P2, 120, 000 P985, 000 P768, 600 P988, 000 D P2, 736,000 P2, 269, 800 P993, 000 P213, 800 P1, 039, 000

Answer rating: 100% (QA)

Based on the information provided we can calculate the financial results of Gire Lims business operations for the year ending December 31 2022 To dete... View the full answer