The accounts and balances shown below are gathered from Den Company's adjusted trial balance. Wages Payable P250,000 Cash 175,000 Bonds Payable 600,000 Dividends Payable 140,000 Accrued Expenses 136,000 Inventory 820,000 Longterm Funds 525,000 Financial Assets at Fair Value Through Profit or Loss 153,000 Accumulated Depreciation - Prop., Plant & Equipment 400,000 Financial Assets At Fair Value Through Other Comprehensive Income 300,000 Discount on Bonds Payable 48,000 Investment in Associates 1,020,000 Income Tax Payable Payable 228,000 Accounts Receivable 248,000 Accounts Payable 366,000 Property, Plant and Equipment 1,200,000 Goodwill 450,000 Advances from Affiliated Companies 900,000 Den Company should report total current liabilities of _______. Den Company should report total current assets of ________.
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
The accounts and balances shown below are gathered from Den Company's adjusted
|
Wages Payable |
P250,000 |
|
Cash |
175,000 |
|
Bonds Payable |
600,000 |
|
Dividends Payable |
140,000 |
|
Accrued Expenses |
136,000 |
|
Inventory |
820,000 |
|
Longterm Funds |
525,000 |
|
Financial Assets at Fair Value Through Profit or Loss |
153,000 |
|
|
400,000 |
|
Financial Assets At Fair Value Through Other Comprehensive Income |
300,000 |
|
Discount on Bonds Payable |
48,000 |
|
Investment in Associates |
1,020,000 |
|
Income Tax Payable Payable |
228,000 |
|
|
248,000 |
|
Accounts Payable |
366,000 |
|
Property, Plant and Equipment |
1,200,000 |
|
|
450,000 |
|
Advances from Affiliated Companies |
900,000 |
- Den Company should report total current liabilities of _______.
-
Den Company should report total current assets of ________.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
