Only 60% of the accounts receivable is collectible. The entire inventory is expected to be sold half the price. The equipment is expected to be sold at its carrying amount LIABILITIES AND EQUITY 100,000 Accounts payable 600,000 Income tax payable 1,560,000 Note payable (secured by equipment) s00,000 Loan payable (secured by land & bldg 1,200,000 Share capital 400,000 Retained earnings (deficit) 4,660,000 Total ASSETS Cash Accounts receivable 1,600,000 Iventory Land Baikding Equipment, net Total 900,000 1,000,000 1,200,000 2,000,000 (2,040,000) 4,660,000 Aditional information: land and building are expected to be sold at a lump sum price of P2,300,000. The equipment is expected to be sold at its carrying amount but after refurbishment costs of P70,000. Certain accounts payable are measured gross of P23,000 cash discount which Monday intends to take. A supplier waived repayment of a P420,000 account. , The taxing authority gave Monday a six-month tax amnesty to settle the tax liability for P780,000. Interests of P80,000 and P70,000 are expected to be paid on the note and loan, respectively. • Liquidation costs of P120,000 are expected to be incurred. • SSS, PhilHealth, and Pag-IBIG contributions of P160,000, not reflected on the balance sheet above, are expected to be paid.
Only 60% of the accounts receivable is collectible. The entire inventory is expected to be sold half the price. The equipment is expected to be sold at its carrying amount LIABILITIES AND EQUITY 100,000 Accounts payable 600,000 Income tax payable 1,560,000 Note payable (secured by equipment) s00,000 Loan payable (secured by land & bldg 1,200,000 Share capital 400,000 Retained earnings (deficit) 4,660,000 Total ASSETS Cash Accounts receivable 1,600,000 Iventory Land Baikding Equipment, net Total 900,000 1,000,000 1,200,000 2,000,000 (2,040,000) 4,660,000 Aditional information: land and building are expected to be sold at a lump sum price of P2,300,000. The equipment is expected to be sold at its carrying amount but after refurbishment costs of P70,000. Certain accounts payable are measured gross of P23,000 cash discount which Monday intends to take. A supplier waived repayment of a P420,000 account. , The taxing authority gave Monday a six-month tax amnesty to settle the tax liability for P780,000. Interests of P80,000 and P70,000 are expected to be paid on the note and loan, respectively. • Liquidation costs of P120,000 are expected to be incurred. • SSS, PhilHealth, and Pag-IBIG contributions of P160,000, not reflected on the balance sheet above, are expected to be paid.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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