On 31 December 2017, IC showed the following current assets Cash 3,200,000 Accounts receivable 2,500,000 Inventory 2,000,000 Prepaid expenses 100,000 Total Current Assets 7,800,000 Cash on hand, including postdated check of P50,000 and employees IOUs P50,000 500,000 Cash in bank per bank statement (Outstanding Checks on 31 December 2017, P200,000) 2,700,000 Total Cash 3,200,000 Customers’ debit balances, net of customer deposit of P50,000 1,900,000 Allowance for doubtful accounts (150,000) Sales price of goods invoiced to customers at 150% of cost on 29 December 2017 but delivered on 5 January 2018 and excluded from reported inventory 750,000 Total accounts receivable 2,500,000 What is the adjusted cash balance?
On 31 December 2017, IC showed the following current assets Cash 3,200,000 Accounts receivable 2,500,000 Inventory 2,000,000 Prepaid expenses 100,000 Total Current Assets 7,800,000 Cash on hand, including postdated check of P50,000 and employees IOUs P50,000 500,000 Cash in bank per bank statement (Outstanding Checks on 31 December 2017, P200,000) 2,700,000 Total Cash 3,200,000 Customers’ debit balances, net of customer deposit of P50,000 1,900,000 Allowance for doubtful accounts (150,000) Sales price of goods invoiced to customers at 150% of cost on 29 December 2017 but delivered on 5 January 2018 and excluded from reported inventory 750,000 Total accounts receivable 2,500,000 What is the adjusted cash balance?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
On 31 December 2017, IC showed the following current assets
Cash |
3,200,000 |
|
2,500,000 |
Inventory |
2,000,000 |
Prepaid expenses |
100,000 |
Total Current Assets |
7,800,000 |
Cash on hand, including postdated check of P50,000 and employees IOUs P50,000 |
500,000 |
Cash in bank per bank statement (Outstanding Checks on 31 December 2017, P200,000) |
2,700,000 |
Total Cash |
3,200,000 |
Customers’ debit balances, net of customer deposit of P50,000 |
1,900,000 |
Allowance for doubtful accounts |
(150,000) |
Sales price of goods invoiced to customers at 150% of cost on 29 December 2017 but delivered on 5 January 2018 and excluded from reported inventory |
750,000 |
Total accounts receivable |
2,500,000 |
What is the adjusted cash balance?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education