Solution and computation

PROBLEM 5-12 Comprehensive Calcium prepares statements on the cash basis. The balance sheet on December 31, 2021 and income statement for the year 2021 are as follows: Statement of Financial Position: 1,500,000 Cash Furniture and equipment 2,500,000 4,000,000 Total Note payable 1,000,000 Capital: Balance, January 1 1,600,000 Add: Net income 2,250,000 Total 3,850,000 Less: Withdrawals 850,000 3,000,000 Total 4,000,000 Income Statement: Professional fees 5,000,000 Expenses: Rent 1,200,000 Supplies 800,000 Other operating expenses 750,000 2,750,000 Net income 2,250,000 You decided that the statements should be prepared on the accrual basis and you assemble the information below: 1) The furniture and equipment were acquired on July 1, 2020. The estimated life is 10 years. 100 CS CamScanner 2) The 12% promissory note is dated April 1, 2021 and matures in one Interest is payable on the date of maturity. 3) Accounts receivable: year. December 31, 2021 December 31, 2020 750,000 4) Accrued rent expense on December 31, 2021, P100,000. 500,000 5) Office supplies unused: December 31, 2021 December 31, 2020 250,000 300,000