Liza Company provided the following data at year-end: Cash P2,000,000 Accounts receivable - P3,000,000 Inventory - P1,900,000 Prepaid expenses - 100,000 Accounts payable - P2,450,000 Interest payable - P150,000 Income tax payable - P300,000 Mortgage payable, due in four annual installments - P2,000,000 Analysis of Cash: Cash in bank - P1,500,000 Employee IOU - P100,000 Customer's check marked as "Insufficient Fund" - P400,000 Analysis of Accounts Receivable: Customers' debit balances - P1,800,000 Advances to subsidiary - P900,000 Advances to suppliers - P500,000 Allowance for doubtful accounts - (P200,000) What amount should be reported as total current assets?
Liza Company provided the following data at year-end: Cash P2,000,000 Accounts receivable - P3,000,000 Inventory - P1,900,000 Prepaid expenses - 100,000 Accounts payable - P2,450,000 Interest payable - P150,000 Income tax payable - P300,000 Mortgage payable, due in four annual installments - P2,000,000 Analysis of Cash: Cash in bank - P1,500,000 Employee IOU - P100,000 Customer's check marked as "Insufficient Fund" - P400,000 Analysis of Accounts Receivable: Customers' debit balances - P1,800,000 Advances to subsidiary - P900,000 Advances to suppliers - P500,000 Allowance for doubtful accounts - (P200,000) What amount should be reported as total current assets?
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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![Liza Company provided the following data at year-end:
Cash P2,000,000
Accounts receivable - P3,000,000
Inventory - P1,900,000
Prepaid expenses - 100,000
Accounts payable - P2,450,000
Interest payable - P150,000
Income tax payable - P300,000
Mortgage payable, due in four annual installments - P2,000,000
Analysis of Cash:
Cash in bank - P1,500,000
Employee IOU - P100,000
Customer's check marked as "Insufficient Fund" - P400,000
Analysis of Accounts Receivable:
Customers' debit balances - P1,800,000
Advances to subsidiary - P900,000
Advances to suppliers - P500,000
Allowance for doubtful accounts - (P200,000)
What amount should be reported as total current assets?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe7463ac5-fd9e-4360-a086-6863e5059fb6%2Fed255e44-6cb7-41b0-bdc7-a8c4495748fd%2F1s1vtf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Liza Company provided the following data at year-end:
Cash P2,000,000
Accounts receivable - P3,000,000
Inventory - P1,900,000
Prepaid expenses - 100,000
Accounts payable - P2,450,000
Interest payable - P150,000
Income tax payable - P300,000
Mortgage payable, due in four annual installments - P2,000,000
Analysis of Cash:
Cash in bank - P1,500,000
Employee IOU - P100,000
Customer's check marked as "Insufficient Fund" - P400,000
Analysis of Accounts Receivable:
Customers' debit balances - P1,800,000
Advances to subsidiary - P900,000
Advances to suppliers - P500,000
Allowance for doubtful accounts - (P200,000)
What amount should be reported as total current assets?
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