Reference no: EM133117827

Question - On December 31, 2021 the advertising account of Green company had a balance of P146,000 before any year-end adjustment relating to the following: Brochures and leaflets for a sales promotional campaign in January 2022 amounting to P15,000 was included in the P146,000 balance. Airtime for the radio advertisements during December 2021 for P9,000 was billed to Green on January 2, 2022. Green paid the full amount on January 9, 2022. What amount should Green report as advertising expense in its income statement for the year ended December 31, 2021?

Yellow company owns an office building and leases the offices under a variety of rental agreements involving rent paid in advance monthly or annually. Not all tenants make timely payment of their rent. The following data were taken from the trial balance of Yellow: Rentals receivable were P96,000 and P124,000 for 2020 and 2021 respectively; Unearned rentals were P320,000 and P240,000 for 2020 and 2021 respectively. During 2021, Yellow received P800,000 cash from tenants. What amount of rental revenue should Yellow record for 2021.