The accounts below were taken from the unadjusted trial balance of Deco Company as of December 31, 20X1: Cash Trading securities, at cost Notes receivable Trade accounts receivable P124,000 87,000 92,000 122,000 6,000 136,000 150,000 75,000 4,000 250,000 15,000 Allowance for doubtful accounts Merchandise inventory Notes payable Trade accounts payable Employees' income tax withheld Bonds payable Stock dividends payable |Income tax payable 28,000 An analysis of the above accounts disclosed the following: 1. Bank overdraft of P13,000 was deducted from cash balance. 2. Trade accounts receivable was net of customers' deposit of P7,000. 3. Merchandise worth P15,000 received December 30, 20x1 was included in the inventory but was not recorded as a purchase. 4. Accounts payable was net of accounts with debit balance of P12,000. 5. A bank loan of P30,000 due December 31, 20X3 was included in the notes payable balance. 6. Bonds payable which was issued in 20X1 will mature in five annual instalments beginning June 1, 20x2. 7. Trading securities have a fair market value of P90,000.
The accounts below were taken from the unadjusted trial balance of Deco Company as of December 31, 20X1: Cash Trading securities, at cost Notes receivable Trade accounts receivable P124,000 87,000 92,000 122,000 6,000 136,000 150,000 75,000 4,000 250,000 15,000 Allowance for doubtful accounts Merchandise inventory Notes payable Trade accounts payable Employees' income tax withheld Bonds payable Stock dividends payable |Income tax payable 28,000 An analysis of the above accounts disclosed the following: 1. Bank overdraft of P13,000 was deducted from cash balance. 2. Trade accounts receivable was net of customers' deposit of P7,000. 3. Merchandise worth P15,000 received December 30, 20x1 was included in the inventory but was not recorded as a purchase. 4. Accounts payable was net of accounts with debit balance of P12,000. 5. A bank loan of P30,000 due December 31, 20X3 was included in the notes payable balance. 6. Bonds payable which was issued in 20X1 will mature in five annual instalments beginning June 1, 20x2. 7. Trading securities have a fair market value of P90,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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How much total current liabilities should be reported on the statement of financial
position as of December 31, 20X1?
Transcribed Image Text:The accounts below were taken from the unadjusted trial balance of Deco Company as of
December 31, 20X1:
Cash
Trading securities, at cost
Notes receivable
Trade accounts receivable
Allowance for doubtful accounts
Merchandise inventory
Notes payable
Trade accounts payable
Employees' income tax withheld
Bonds payable
Stock dividends payable
P124,000
87,000
92,000
122,000
6,000
136,000
150,000
75,000
4,000
250,000
15,000
Income tax payable
28,000
An analysis of the above accounts disclosed the following:
1. Bank overdraft of P13,000 was deducted from cash balance.
2. Trade accounts receivable was net of customers' deposit of P7,000.
3. Merchandise worth P15,000 received December 30, 20X1 was included in the inventory
but was not recorded as a purchase.
4. Accounts payable was net of accounts with debit balance of P12,000.
5. A bank loan of P30,000 due December 31, 20X3 was included in the notes payable
balance.
6. Bonds payable which was issued in 20X1 will mature in five annual instalments beginning
June 1, 20x2.
7. Trading securities have a fair market value of P90,000.
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