Below are the financial data of XYZ Company, a not-for-profit entity for month of June, 2017.Cash – P2,500,300Accounts Receivable – P500,600Long-Term Investment – P1,500,000Plant, Property and Equipment – P5,600,000Accounts Payable – P350,600Notes Payable – P500,500Permanent Restricted Net Assets – 5% of Total Net AssetsTemporary Restricted Net Assets – 15% of Total Net AssetsTransactions for the month of July, 2017Receive a car worth – P300,000 but treated as temporary restricted net assetsPartial payment of accounts payable – P50,600Issued a promissory notes worth – P150,500Paid the salary of employees – P15,250Reclassify 5% of May, 2017 temporary restricted net assets to unrestricted net assets. Compute the balance of unrestricted net assets as of July, 2017a. 7,453,963.50b. 7.453,963c. 7,453,962.50d. 7,453,964Compute the balance of total assets as of July, 2017a. 10,485,550b. 10,485,500c. 10,486,550d. 10,487,550

Assets that have specific usage limitations or restrictions imposed by outside parties or governing…

Answered: Compute the balance of unrestricted net…

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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Below are the financial data of XYZ Company, a not-for-profit entity for month of June, 2017.

Cash – P2,500,300
Accounts Receivable – P500,600
Long-Term Investment – P1,500,000
Plant, Property and Equipment – P5,600,000
Accounts Payable – P350,600
Notes Payable – P500,500
Permanent Restricted Net Assets – 5% of Total Net Assets
Temporary Restricted Net Assets – 15% of Total Net Assets

Transactions for the month of July, 2017

Receive a car worth – P300,000 but treated as temporary restricted net assets
Partial payment of accounts payable – P50,600
Issued a promissory notes worth – P150,500
Paid the salary of employees – P15,250
Reclassify 5% of May, 2017 temporary restricted net assets to unrestricted net assets.

Compute the balance of unrestricted net assets as of July, 2017

a. 7,453,963.50

b. 7.453,963

c. 7,453,962.50

d. 7,453,964

Compute the balance of total assets as of July, 2017

a. 10,485,550

b. 10,485,500

c. 10,486,550

d. 10,487,550

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