14-7 (AICPA Adapted) Under accrual basis, Hamtikan Company reported rental income for the current year at P600,000. The entity provided the following additional information regarding rental income: Unearned rental income, January 1 Unearned rental income, December 31 Accrued rental income, January 1 Accrued rental income, December 31 50,000 75,000 30,000 40,000 What total amount of cash was received from rental in the current year? a. 585,000 b. 615,000 c. 625,000 d. 655,000 Problem 14-8 (IAA) Royal Company provided the following data for the current year: Sales 10,000,000 Cost of goods sold 5,300,000 3,800,000 Operating expenses December 31 January 1 Prepaid operating expenses 1,000,000 700,000 Accounts payable 1,350,000 1,200,000 Inventory 2,500,000 2,100,000 Accounts receivable 1,400,000 1,375,000 Under cash basis, what amount should be reported as purchases for the current year? a. 5,550,000 b. 5,700,000 c. 5,850,000 d. 5,150,000