Lim Company paid or collected during the current year the following items: Insurance premiums paidP 15,400Interest collected30,900Salaries paid135,200 The following balances have been excerpted from Lim's balance sheets: December 31January 1Prepaid insuranceP 1,200P 1,500Interest receivable3,7002,900Salaries payable12,30010,600 The interest revenue on the income statement for the current year wasGroup of answer choicesP24,300P31,700P30,100P37,500

Interest revenue on the income statement for the current year = Interest collected + Ending Interest…

Answered: Lim Company paid or collected during…

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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Question

Lim Company paid or collected during the current year the following items:

Insurance premiums paid	P 15,400
Interest collected	30,900
Salaries paid	135,200

The following balances have been excerpted from Lim's balance sheets:

	December 31	January 1
Prepaid insurance	P 1,200	P 1,500
Interest receivable	3,700	2,900
Salaries payable	12,300	10,600

The interest revenue on the income statement for the current year was

Group of answer choices

P24,300

P31,700

P30,100

P37,500

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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