14. Sexy Services pays a monthly fixed salary expense of P25, 000. Its supplies expense is P5 for every P100 of services rendered. Total supplies expense for the period is P2, 000. Sexys operating income is

a. P15, 000

b. P38, 000

c. P40, 000

d. P13, 000

19. If the residual interest of Grand Service Company is P180, 000 which is 2/3 of the total economic resources, what would be the amount of its economic obligation?

a. P90, 000

b. P450, 000

c. P270, 000

d. P180, 000

24. ARIBA purchased merchandise from his supplier with list price of P50,000 and invoice price of P35,000. The purchase is subject to 2% discount if paid within 10 days. The entry to record payment within the discount period is

a. DR. Accounts payable 34,300 CR. Cash 34,300

b. Accounts payable 49,000 Cash 49,000

c. DR. Accounts payable 50,000 CR. Purchase discount 1,000 CR. Cash 49,000

d. DR. Accounts payable 35,000 CR. Purchase discount 700 CR. Cash 34,300