The December 31, 2021 statement of financial position of PINK Company contained the followingcurrent assets:Cash and cash equivalents2,400,525Accounts receivable, net1,775,500Inventories387,270Prepaid expenses500,000An examination revealed that:Cash – includes P200,000 set aside for plant expansion; cash in bank which is net of bank overdraft,P13,000; and petty cash fund which includes IOUS of employees, P1,500Accounts receivable – includes accounts with credit balances of P25,000; and accounts for writeoff, P12,500Inventories – includes goods held on consignment, P27,000; goods in transit to customers, FOBdestination, P50,250Prepaid expenses – consist of an insurance applicable for 6 months starting October 16, 2021,P80,000

Solution Concept Notes : IOUs are not part of the cash and cash equivalent The credit balances of…

The December 31, 2021 statement of financial position of PINK Company contained the follow current assets: Cash and cash equivalents 2,400,525 Accounts receivable, net Inventories 1,775,500 387,270 Prepaid expenses 500,000 An examination revealed that: • Cash-includes P200,000 set aside for plant expansion; cash in bank which is net of bank overdra P13,000; and petty cash fund which includes IOUS of employees, P1,500 • Accounts receivable – includes accounts with credit balances of P25,000; and accounts for wr off, P12,500 Inventories – includes goods held on consignment, P27,000; goods in transit to customers, F destinetion EO 250

The December 31, 2021 statement of financial position of PINK Company contained the follow current assets: Cash and cash equivalents 2,400,525 Accounts receivable, net Inventories 1,775,500 387,270 Prepaid expenses 500,000 An examination revealed that: • Cash-includes P200,000 set aside for plant expansion; cash in bank which is net of bank overdra P13,000; and petty cash fund which includes IOUS of employees, P1,500 • Accounts receivable – includes accounts with credit balances of P25,000; and accounts for wr off, P12,500 Inventories – includes goods held on consignment, P27,000; goods in transit to customers, F destinetion EO 250

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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