32) Psalm Company reported P210,000 in sales. Its opening accounts receivable balance was P45,000 and its

ending accounts receivable balance was P50,000. The company also reported P20,000 unearned revenues

at the end of the year. What was the amount of cash collected from customers for the year?

A. 225,000 B. 215,000 C. 210,000 D. 205,000

33) Backa Company has the following information:

Prepaid insurance January 1 1,600,000

Prepaid insurance December 800,000

Insurance payable decrease by 1,200,000

Insurance payments 4,000,000

How much is the insurance expense under accrual basis?

A. 4,000,000 B. 3,400,000 C. 3,600,000 D. 4,800,000

34) Jayvier Company has the following information:

Prepaid insurance January 1 1,600,000

Prepaid insurance December 800,000

Insurance payable decrease by 1,200,000

Insurance payments 3,600,000

How much is the insurance expense under cash basis?

A. 4,000,000 B. 2,400,000 C. 3,600,000 D. 4,800,000

35) Using the data for Canonizado Corporation, compute the liabilities at year-end:

Total assets, end 80,000

Share capital, end 15,000

Retained earnings, beginning 22,000

Net income 15,000

Dividends declared 7,000

A. 65,000 B. 50,000 C. 43,000 D. 35,000