Data for item nos. 16 and 17 The following accounts and their balances in an unadjusted trial balance of Record of Youth Company as of December 31, 2020: Cash and cash equivalents- P400,000; Trade and other receivable P2,000,000; Subscription receivable- P375,000; Inventory- P500,000; Trade and other payables- P670,000; Income tax payable- P196,500. Additional information are as follows: • Trade and other receivables include long term advances to company officers amounting to P430,000. • The subscription receivable has the following call dates: June 30, 2021, P200,000; December 31, 2021, P100,000; and June 30, 2022, P75,000. • Inventory of P500,000 was determined by physical count. At December 31, 2020, goods costing P125,000 are in transit from a supplier. Terms of purchase of said goods is FOB shipping point. The goods and the related invoice have not been received as of year-end. • Trade and other payables include dividends payable amounting to P170,000, of which P70,000 is payable in cash and P100,000 is distributable in Record of Youth's own shares. 16. The total current assets at December 31, 2020 is A. P2,595,000 B. P2,670,000 C. P2,770,000 D. P2,895,000 17. The total current liabilities at December 31, 2020 is A. P866,500 B. P891,500 C. P766,500 D. P731,500
Data for item nos. 16 and 17 The following accounts and their balances in an unadjusted trial balance of Record of Youth Company as of December 31, 2020: Cash and cash equivalents- P400,000; Trade and other receivable P2,000,000; Subscription receivable- P375,000; Inventory- P500,000; Trade and other payables- P670,000; Income tax payable- P196,500. Additional information are as follows: • Trade and other receivables include long term advances to company officers amounting to P430,000. • The subscription receivable has the following call dates: June 30, 2021, P200,000; December 31, 2021, P100,000; and June 30, 2022, P75,000. • Inventory of P500,000 was determined by physical count. At December 31, 2020, goods costing P125,000 are in transit from a supplier. Terms of purchase of said goods is FOB shipping point. The goods and the related invoice have not been received as of year-end. • Trade and other payables include dividends payable amounting to P170,000, of which P70,000 is payable in cash and P100,000 is distributable in Record of Youth's own shares. 16. The total current assets at December 31, 2020 is A. P2,595,000 B. P2,670,000 C. P2,770,000 D. P2,895,000 17. The total current liabilities at December 31, 2020 is A. P866,500 B. P891,500 C. P766,500 D. P731,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Data for item nos. 16 and 17
The following accounts and their balances in an unadjusted trial balance of Record of Youth Company as
of December 31, 2020:
Cash and cash equivalents- P400,000;
Trade and other receivable P2,000,000;
Subscription receivable- P375,000;
Inventory- P500,000;
Trade and other payables- P670,000;
Income tax payable- P196,500.
Additional information are as follows:
• Trade and other receivables include long term advances to company officers amounting to P430,000.
• The subscription receivable has the following call dates: June 30, 2021, P200,000; December 31, 2021,
P100,000; and June 30, 2022, P75,000.
• Inventory of P500,000 was determined by physical count. At December 31, 2020, goods costing
P125,000 are in transit from a supplier. Terms of purchase of said goods is FOB shipping point. The
goods and the related invoice have not been received as of year-end.
• Trade and other payables include dividends payable amounting to P170,000, of which P70,000 is
payable in cash and P100,000 is distributable in Record of Youth's own shares.
16. The total current assets at December 31, 2020 is
A. P2,595,000
B. P2,670,000
C. P2,770,000
D. P2,895,000
17. The total current liabilities at December 31, 2020 is
A. P866,500
B. P891,500
C. P766,500
D. P731,500
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