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?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

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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