CASE 3 In connection with your audit of the Cebu Co. for the year 20x1, you were able to gather the following accounts from the unadjusted trial balance of the company on December 31, 20x1: Cash P340,000 1,050,000 8,000 360,000 20,000 300,000 900,000 485,000 200,000 44,000 600,000 60,000 24,000 18,000 400,000 160,000 Trading securities Accounts Receivable Allowance for doubtful accounts Notes receivable Prepaid rent Merchandise inventory Accounts payable Notes payable Accrued expenses Bonds payable (due semiannually in June and December at P60,000) Income tax payable sss and HDMF premiums payable Withholding tax payable Mortgage payable, due July 31, 20x3 Contingent liability Additional information: Cash consists of: Cash in bank per bank statement (outstanding checks P24,000) Petty cash, including unreplenished petty cash expense vouchers of P300) Customer's advance deposit in check dated January 15, 20x2 P334,000 1,000 5,000 P340,000 Accounts receivable include P250,000 selling price of goods sent on consignment at 125% of the cost and not included in the ending inventory. • Notes receivable include notes discounted by P160,000. • Accounts payable includes P80,000 cost of purchases in transit FOB destination but not included in the inventory. It also includes the customer's advance deposit in a check dated January 15, 20x2 of P5,000. The note payable is a promissory note dated October 1, 20x1, due March 31, 20x2, with 18% interest per annum. This is in connection with a loan from Chibi bank. Accrued expenses exclude the interest pavable on the note.
CASE 3 In connection with your audit of the Cebu Co. for the year 20x1, you were able to gather the following accounts from the unadjusted trial balance of the company on December 31, 20x1: Cash P340,000 1,050,000 8,000 360,000 20,000 300,000 900,000 485,000 200,000 44,000 600,000 60,000 24,000 18,000 400,000 160,000 Trading securities Accounts Receivable Allowance for doubtful accounts Notes receivable Prepaid rent Merchandise inventory Accounts payable Notes payable Accrued expenses Bonds payable (due semiannually in June and December at P60,000) Income tax payable sss and HDMF premiums payable Withholding tax payable Mortgage payable, due July 31, 20x3 Contingent liability Additional information: Cash consists of: Cash in bank per bank statement (outstanding checks P24,000) Petty cash, including unreplenished petty cash expense vouchers of P300) Customer's advance deposit in check dated January 15, 20x2 P334,000 1,000 5,000 P340,000 Accounts receivable include P250,000 selling price of goods sent on consignment at 125% of the cost and not included in the ending inventory. • Notes receivable include notes discounted by P160,000. • Accounts payable includes P80,000 cost of purchases in transit FOB destination but not included in the inventory. It also includes the customer's advance deposit in a check dated January 15, 20x2 of P5,000. The note payable is a promissory note dated October 1, 20x1, due March 31, 20x2, with 18% interest per annum. This is in connection with a loan from Chibi bank. Accrued expenses exclude the interest pavable on the note.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
100%
1. Trade and other payables
2. total current liabilities
Transcribed Image Text:CASE 3
In connection with your audit of the Cebu Co. for the year 20x1, you were able to gather the following
accounts from the unadjusted trial balance of the company on December 31, 20x1:
Cash
P340,000
1,050,000
8,000
360,000
20,000
300,000
900,000
485,000
200,000
44,000
600,000
60,000
24,000
18,000
400,000
160,000
Trading securities
Accounts Receivable
Allowance for doubtful accounts
Notes receivable
Prepaid rent
Merchandise inventory
Accounts payable
Notes payable
Accrued expenses
Bonds payable (due semiannually in June and December at P60,000)
Income tax payable
ssS and HDMF premiums payable
Withholding tax payable
Mortgage payable, due July 31, 20x3
Contingent liability
Additional information:
Cash consists of:
Cash in bank per bank statement (outstanding checks P24,000)
Petty cash, including unreplenished petty cash expense vouchers of P300)
Customer's advance deposit in check dated January 15, 20x2
P334,000
1,000
5,000
P340,000
• Accounts receivable include P250,000 selling price of goods sent on consignment at 125% of the
cost and not included in the ending inventory.
• Notes receivable include notes discounted by P160,000.
Accounts payable includes P80,000 cost of purchases in transit FOB destination but not included
in the inventory. It also includes the customer's advance deposit in a check dated January 15, 20x2
of P5,000.
The note payable is a promissory note dated October 1, 20x1, due March 31, 20x2, with 18%
interest per annum. This is in connection with a loan from Chibi bank. Accrued expenses exclude
the interest payable on the note.
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