A. The following pertains to Kerry Corporation on December 31, 2021: Postage stamps Credit memo from a vendor for a purchase return Current account BPI 500 10,000 (50,000) 1,000,000 2,000 500,000 5,000 Current account at Metrobank Employees postdated check Foreign bank account – restricted (in equivalent pesos) IOU from controller's sister Listed stock held as temporary investments Payroll account Petty cash fund (P2,000 in currency and expense receipts 5,000 for P3,000) Postal money order Traveler's check 7,500 250,000 15,000 25,000 150,000 Treasury bills, due 1/31/2022 (purchased 01/31/2021) Treasury bills, due 3/31/2022 (purchased 12/31/2021) Treasury warrants 100,000 150,000 Additional information: Check of P100,000 drawn against Metrobank account in payment of accounts payable was recorded on December 31,2021 but mailed to suppliers on January 5,2022. Check of P50,000 drawn against Metrobank account dated January 15,2022 in payment of accounts payable was recorded and mailed on December 31,2021. Check of P25,000 drawn against Metrobank account dated January 15,2021 in payment of accounts payable was recorded and mailed on January 15, 2022. As of the reporting period, the same has not been encashed by the payee and still outstanding. 40 How much cash and cash equivalents should Kerry Corp. report on the December 31,2021 statement of financial position? a. P1,565,000 c. P1,717,000 b. P1,700,000 d. P1,865,
A. The following pertains to Kerry Corporation on December 31, 2021: Postage stamps Credit memo from a vendor for a purchase return Current account BPI 500 10,000 (50,000) 1,000,000 2,000 500,000 5,000 Current account at Metrobank Employees postdated check Foreign bank account – restricted (in equivalent pesos) IOU from controller's sister Listed stock held as temporary investments Payroll account Petty cash fund (P2,000 in currency and expense receipts 5,000 for P3,000) Postal money order Traveler's check 7,500 250,000 15,000 25,000 150,000 Treasury bills, due 1/31/2022 (purchased 01/31/2021) Treasury bills, due 3/31/2022 (purchased 12/31/2021) Treasury warrants 100,000 150,000 Additional information: Check of P100,000 drawn against Metrobank account in payment of accounts payable was recorded on December 31,2021 but mailed to suppliers on January 5,2022. Check of P50,000 drawn against Metrobank account dated January 15,2022 in payment of accounts payable was recorded and mailed on December 31,2021. Check of P25,000 drawn against Metrobank account dated January 15,2021 in payment of accounts payable was recorded and mailed on January 15, 2022. As of the reporting period, the same has not been encashed by the payee and still outstanding. 40 How much cash and cash equivalents should Kerry Corp. report on the December 31,2021 statement of financial position? a. P1,565,000 c. P1,717,000 b. P1,700,000 d. P1,865,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
Transcribed Image Text:A. The following pertains to Kerry Corporation on December 31, 2021:
Postage stamps
Credit memo from a vendor for a purchase return
500
10,000
(50,000)
1,000,000
2,000
500,000
5,000
Current account BPI
Current account at Metrobank
Employees postdated check
Foreign bank account – restricted (in equivalent pesos)
IOU from controller's sister
Listed stock held as temporary investments
Payroll account
Petty cash fund (P2,000 in currency and expense receipts 5,000
for P3,000)
Postal money order
Traveler's check
Treasury bills, due 1/31/2022 (purchased 01/31/2021)
Treasury bills, due 3/31/2022 (purchased 12/31/2021)
Treasury warrants
7,500
250,000
15,000
25,000
150,000
100,000
150,000
Additional information:
Check of P100,000 drawn against Metrobank account in payment of accounts payable
was recorded on December 31,2021 but mailed to suppliers on January 5,2022.
Check of P50,000 drawn against Metrobank account dated January 15,2022 in payment of
accounts payable was recorded and mailed on December 31,2021.
Check of P25,000 drawn against Metrobank account dated January 15,2021 in payment of
accounts payable was recorded and mailed on January 15, 2022. As of the reporting period, the
same has not been encashed by the payee and still outstanding.
40
How much cash and cash equivalents should Kerry Corp. report on the December 31,2021
statement of financial position?
a. P1,565,000
b. P1,700,000
c. P1,717,000
d. P1,865,
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