The following accounts and their balances appear in an unadjusted trial balance of Melon Company as of December 31, 2020. • Cash and cash equivalents- P400,000 • Inventory- P500,000 • Trade and other receivables- P2,000,000 • Trade and other payables- P670,000 • Subscription receivable- P375,000 • 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, 2021, P200,000; December 31, 2021, P100,000; and June 30, 2022, P75,000. Inventory of P500,000 was determined by physical count. On December 31, 2020, goods costing P125,000 are in transit from a supplier. The terms of purchase of said goods are FOB shipping point. The goods and the related invoice have not been received as of 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 Melon’s own shares. Using the date in no 48, the total current liabilities at December 31, 2020 is a) P731,500 b) P866,500 c) P766,500-answer d) P891,500
Answers are given. Only need solution d=for the answer
The following accounts and their balances appear in an unadjusted
as of December 31, 2020.
• Cash and cash equivalents- P400,000
• Inventory- P500,000
• Trade and other receivables- P2,000,000
• Trade and other payables- P670,000
• Subscription receivable- P375,000
• 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, 2021, P200,000; December 31,
2021, P100,000; and June 30, 2022, P75,000.
Inventory of P500,000 was determined by physical count. On December 31, 2020, goods costing
P125,000 are in transit from a supplier. The terms of purchase of said goods are FOB shipping
point. The goods and the related invoice have not been received as of 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 Melon’s own shares.
Using the date in no 48, the total current liabilities at December 31, 2020
is
a) P731,500
b) P866,500
c) P766,500-answer
d) P891,500
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