The following is the trial balance of Benny G. Company as of

December 31, 2019.

Benny G. Company Trial Balance

December 31, 2019

 

     Cash                              758,400

     Accounts receivable                    370,000

     Allowance for bad debts                               8,000

     Notes receivable                    450,000

     Interest Receivable                     10,000

     Merchandise inventory                    800,000

     Furniture and equipment               820,000

     Accumulated depreciation – Furnitures & equipment                    248,000

     Accounts payable                              667,000

     Notes payable                                   500,000

     Benny G., capital                                          1,458,200

     Sales                                             3,450,000

     Sales returns and allowances                62,000

     Sales discount                          96,000

     Purchases                              2,460,000

     Freight-in                         146,500

     Purchase returns and allowances                         68,500

     Salaries expense                    258,000

     Supplies expense                     87,000

     Miscellaneous expenses                     53,000

     Interest expense                          30,000

     Interest income                                                  1,200

                                     6,390,900         6,390,900

Data for adjustments on December 31, 2019 are as follows:

1. Unpaid salaries, P45,000
2. Notes receivable is a 15%, 120-day customer’s note dated December 1, 2019.
3. Notes payable is company’s own 180-day note discounted with BDO on October 22, 2019. Discount rate was 12%.
4. Allowance for bad debts is to be increased to 10% of accounts receivable.
5. Supplies on hand on December 31 amounted to P29,000.

 

QUESTIONS:

1. If there is an adjunct account, how much is the balance of it?
2. How much is the interest receivable of Benny G. Company on December 31, 2019?
3. How much is the interest payable of Garceras Co on December 31, 2019?

Answer rating: 100% (QA)

1 If there is an adjunct account the balance of it would be P10000 2 The interest receivable of Benn... View the full answer