.Write in your own handwriting using a 10-12 column worksheet. Use black/blue ballpen. Journal entries and...
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.Write in your own handwriting using a 10-12 column worksheet. Use black/blue ballpen. Journal entries and solutions should be in good accounting form with correct explanations (ie To record purchase of equipment). All amounts should be captioned, no abbreviations." II. Current Assets and Current Liabilities The accounts below were taken from the unadjusted trial balance of Deco Company as of December 31, 20X1: Cash Trading securities, at cost Notes receivable Trade accounts receivable Allowance for doubtful accounts Merchandise inventory Notes payable Trade accounts payable Employees' income tax withheld Bonds payable Stock dividends payable P124,000 87,000 Income tax payable An analysis of the above accounts disclosed the following: 1. Bank overdraft of P13,000 was deducted from cash balance. 92,000 122,000 6,000 136,000 150,000 75,000 4,000 250,000 15,000 28,000 2. Trade accounts receivable was net of customers' deposit of P7,000. 3. Merchandise worth P15,000 received December 30, 20x1 was included in the inventory but was not recorded as a purchase. 4. Accounts payable was net of accounts with debit balance of P12,000. 5. A bank loan of P30,000 due December 31, 20X3 was included in the notes payable balance. 6. Bonds payable which was issued in 20X1 will mature in five annual instalments beginning June 1, 20x2. 7. Trading securities have a fair market value of P90,000. Required: 1. Based on the foregoing facts, how much total current assets should be reported on the statement of financial position as of December 31, 20X1? 2. How much total current liabilities should be reported on the statement of financial position as of December 31, 20X1? .Write in your own handwriting using a 10-12 column worksheet. Use black/blue ballpen. Journal entries and solutions should be in good accounting form with correct explanations (ie To record purchase of equipment). All amounts should be captioned, no abbreviations." II. Current Assets and Current Liabilities The accounts below were taken from the unadjusted trial balance of Deco Company as of December 31, 20X1: Cash Trading securities, at cost Notes receivable Trade accounts receivable Allowance for doubtful accounts Merchandise inventory Notes payable Trade accounts payable Employees' income tax withheld Bonds payable Stock dividends payable P124,000 87,000 Income tax payable An analysis of the above accounts disclosed the following: 1. Bank overdraft of P13,000 was deducted from cash balance. 92,000 122,000 6,000 136,000 150,000 75,000 4,000 250,000 15,000 28,000 2. Trade accounts receivable was net of customers' deposit of P7,000. 3. Merchandise worth P15,000 received December 30, 20x1 was included in the inventory but was not recorded as a purchase. 4. Accounts payable was net of accounts with debit balance of P12,000. 5. A bank loan of P30,000 due December 31, 20X3 was included in the notes payable balance. 6. Bonds payable which was issued in 20X1 will mature in five annual instalments beginning June 1, 20x2. 7. Trading securities have a fair market value of P90,000. Required: 1. Based on the foregoing facts, how much total current assets should be reported on the statement of financial position as of December 31, 20X1? 2. How much total current liabilities should be reported on the statement of financial position as of December 31, 20X1?
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1To calculate the total current assets we need to adjust the accounts based on the given information ... View the full answer
Related Book For
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley
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