Please answer the following and show the solutions:

1. Angel Corporation reported total purchases of P3,200,000 in its accrual basis financial statement onDecember 31, 2020. Additional information revealed the following:

• Accounts payable, December 31, 2019 P900,000
• Accounts payable, December 31, 2020 1,250,000

What is the amount of purchases under the cash basis on December 31, 2020? _______________

2. Under the accrual basis, the rental income of Enzo Company for 2020 is P600,000. Additionalinformation regarding rental income are presented below:

• Unearned rental income, January 1, 2020 P50,000
• Unearned rental income, December 31, 2016 75,000
• Accrued rental income, January 1, 2020 30,000
• Accrued rental income, December 31, 2020 40,000

Under the cash basis, how much rental income should be reported by Enzo Company in 2020?

_________________

3. Maria Company acquires copyright from authors, paying in advance royalties in some cases andothers, paying royalties within 30 days of year-end. Maria reported royalty expense of P375,000for the year ended December 31, 2020. The following data are included in the corporation's December

balance sheet:

2019

Prepaid royalties - P60,000

2020

Prepaid royalties - P50,000

2019

Royalties payable - 75,000

2020

Royalties payable - 90,000

Under the cash basis, what amount of royalty expense should be reported in 2020 profit or loss?

_______________