The following accounts and their balances appear in an unadjusted trial balance of Lechon Company as of December 31, 2023: · Cash and cash equivalents- P400,000 · Trade and other receivables- P2,000,000 · Inventory- P500,000 · Subscription receivable- P375,000 · Trade and other payables- P670,000
The following accounts and their balances appear in an unadjusted
· Cash and cash equivalents- P400,000
· Trade and other receivables- P2,000,000
· Inventory- P500,000
· Subscription receivable- P375,000
· Trade and other payables- P670,000
· Income tax payable- P196,500
Additional information:
· Trade and other receivables include long term advances to company officers amounting to P430,000.
· The subscription receivable has the following call dates: June 30,2024- P200,000; December 31, 2024- P100,000; and June 30, 2025- P75,000.
· Inventory of P 500,000 was determined by physical count. On December 31, 2023, goods costing P 125,000 are in transit from a supplier. Terms of purchase of said goods is FOB shipping point. The goods and the related invoice have not been received as of the year end.
· Trade and other payables include dividends payable amounting to P170,000, of which P70,000 is payable in cash and P100,000 is distributable in Lechon’s own shares.
The total current assets at December 31, 2023 is
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