40. On January 1, 2017, Prague Company sold its goods costing P400,000 to Budapest Company. Prague, Company maintains a mark-up of 30% on cost. Budapest Company issued a promissory note that provides for equal annual installments that will yield 12%. The first installment would be made at the end of the current year and the last on December 31, 2021. Prague Company uses the calendar year for reporting purposes The annual collections is a. 99,075 b. 110,964 128,79.7 d. 144,253 C.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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5:11
all
IR1_MIDTERM_20201.pdf
Central Bank Certificates of Indebtedness
3-month Central Bank Treasury bills, maturing on January 31, 2017
3-year Treasury note, acquired three months from its maturity datc of January 31, 2017
3-year Treasury note, acquired 2 years ago, maturing on January 31, 2017
The amount to be included from çash and cash equivalents is
a. P2,500,000
P. 500,000
350,000
450,000
600,000
800,000
b, P1,700,000
c. P1,900,000
d. P1,100,000
40. On January 1, 2017, Prague Company sold its goods costing P400,000 to Budapest Company. Prague
Company maintains a mark-up of 30% on cost. Budapest Company issued a promissory note that provides
for equal annual installments that will yield 12%. The first installment would be made at the end of the
current year and the last on December 31, 2021. Prague Company uses the calendar year for reporting
purposes
The annual collections is
a. 99,075.
b. 110,964
c. 128,797
d. 144,253
41. The information that follows is available from the general ledger, cash in bank - BPI and the bank statement-
of Amsterdam Company for the month of August 2017:
Bank statement balance, August 31, P250,000
Note collected by the bank in August including interest of P2,500, P62,500
NSF checks in August, P25,000
• Outstanding checks at the beginning of August, P47,650, at the end of August, P68,450
II
Transcribed Image Text:5:11 all IR1_MIDTERM_20201.pdf Central Bank Certificates of Indebtedness 3-month Central Bank Treasury bills, maturing on January 31, 2017 3-year Treasury note, acquired three months from its maturity datc of January 31, 2017 3-year Treasury note, acquired 2 years ago, maturing on January 31, 2017 The amount to be included from çash and cash equivalents is a. P2,500,000 P. 500,000 350,000 450,000 600,000 800,000 b, P1,700,000 c. P1,900,000 d. P1,100,000 40. On January 1, 2017, Prague Company sold its goods costing P400,000 to Budapest Company. Prague Company maintains a mark-up of 30% on cost. Budapest Company issued a promissory note that provides for equal annual installments that will yield 12%. The first installment would be made at the end of the current year and the last on December 31, 2021. Prague Company uses the calendar year for reporting purposes The annual collections is a. 99,075. b. 110,964 c. 128,797 d. 144,253 41. The information that follows is available from the general ledger, cash in bank - BPI and the bank statement- of Amsterdam Company for the month of August 2017: Bank statement balance, August 31, P250,000 Note collected by the bank in August including interest of P2,500, P62,500 NSF checks in August, P25,000 • Outstanding checks at the beginning of August, P47,650, at the end of August, P68,450 II
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