An entity provided the following trial balance on June 30, 2020: Cash overdraft (200,000) Accounts receivable, net 700,000 Inventory 1,200,000 Prepaid expenses 200,000 Land held for resale 2,000,000 Property, plant and equipment, net 1,900,000 Accounts payable 700,000 Share capital 3,000,000 Share premium 500,000 Retained earnings 1,600,000 Checks amounting to P600,000 were written to vendors and recorded on June 30 resulting in cash overdraft of P200,000. The checks were mailed on July 9. Land held for resale was sold for cash on July 15. The financial statements were issued on July 31. What total amount should be reported as current assets?
An entity provided the following trial balance on June 30, 2020: Cash overdraft (200,000) Accounts receivable, net 700,000 Inventory 1,200,000 Prepaid expenses 200,000 Land held for resale 2,000,000 Property, plant and equipment, net 1,900,000 Accounts payable 700,000 Share capital 3,000,000 Share premium 500,000 Retained earnings 1,600,000 Checks amounting to P600,000 were written to vendors and recorded on June 30 resulting in cash overdraft of P200,000. The checks were mailed on July 9. Land held for resale was sold for cash on July 15. The financial statements were issued on July 31. What total amount should be reported as current assets?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An entity provided the following
Cash overdraft (200,000)
Inventory 1,200,000
Prepaid expenses 200,000
Land held for resale 2,000,000
Property, plant and equipment, net 1,900,000
Accounts payable 700,000
Share capital 3,000,000
Share premium 500,000
Checks amounting to P600,000 were written to vendors and recorded on June 30 resulting in cash overdraft of P200,000. The checks were mailed on July 9. Land held for resale was sold for cash on July 15. The financial statements were issued on July 31.
What total amount should be reported as current assets?
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