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 P124,000 87,000 92,000 122,000 6,000 136,000 150,000 75,000 4,000 250,000 15,000 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 Income tax payable 28,000 An analysis of the above accounts disclosed the following: 1. Bank overdraft of P13,000 was deducted from cash balance. 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.

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 P124,000 87,000 92,000 122,000 6,000 136,000 150,000 75,000 4,000 250,000 15,000 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 Income tax payable 28,000 An analysis of the above accounts disclosed the following: 1. Bank overdraft of P13,000 was deducted from cash balance. 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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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