The December 31, 2021 statement of financial position of PINK Company contained the following current assets: Cash and cash equivalents 2,400,525 Accounts receivable, net 1,775,500 Inventories 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 overdraft, 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 write off, P12,500 • Inventories – includes goods held on consignment, P27,000; goods in transit to customers, FOB destination, P50,250 Prepaid expenses – consist of an insurance applicable for 6 months starting October 16, 2021, P80,000
The December 31, 2021 statement of financial position of PINK Company contained the following current assets: Cash and cash equivalents 2,400,525 Accounts receivable, net 1,775,500 Inventories 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 overdraft, 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 write off, P12,500 • Inventories – includes goods held on consignment, P27,000; goods in transit to customers, FOB destination, P50,250 Prepaid expenses – consist of an insurance applicable for 6 months starting October 16, 2021, P80,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
How much should pink report as current assets on dec. 31, 2021?
Please answer in good acctg form. thanks!
Transcribed Image Text:The December 31, 2021 statement of financial position of PINK Company contained the following
current assets:
Cash and cash equivalents
2,400,525
Accounts receivable, net
1,775,500
Inventories
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 overdraft,
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 write
off, P12,500
Inventories – includes goods held on consignment, P27,000; goods in transit to customers, FOB
destination, P50,250
Prepaid expenses – consist of an insurance applicable for 6 months starting October 16, 2021,
P80,000
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