The following information relates to HAVE MERCY Company’s obligations as of December 31, 2019. For each of the numbered items, determine the amount if any, that should be reported as current liability in HAVE MERCY’s December 31, 2019 balance sheet. 1. TRADE AND OTHER PAYABLES Accounts payable per general ledger control amounted to P2,720,000, net of P120,000 debit balances in suppliers’ accounts. The unpaid voucher file included the following items that not had been recorded as of December 31, 2019: a) Joli’s General Merchandising Company – P112,000 merchandise shipped on December 31, 2019, FOB Buyer; received on January 10, 2020. b) Matthias Suppliers, Inc. – P96,000 merchandise shipped on December 26, 2019, FOB Supplier; received on January 16, 2020. c) Tang Super Lines Services, Inc. – P72,000 janitorial services for the three-month period ending January 31, 2020. d) Meralco – P33,600 electric bill covering the period December 16, 2019 to January 15, 2020. On December 28, 2019, a supplier authorized HAVE MERCY to return goods billed at P80,000 and shipped on December 20, 2019. The goods were returned by HAVE MERCY on December 28, 2019, but the P80,000 credit memo was not received until January 6, 2020. a. 2,800,800 b. 2,856,000 c. 2,920,800 d. 2,961,600

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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The following information relates to HAVE MERCY Company’s obligations as of December 31, 2019. For each of the numbered items, determine the amount if any, that should be reported as current liability in HAVE MERCY’s December 31, 2019 balance sheet.
1. TRADE AND OTHER PAYABLES
Accounts payable per general ledger control amounted to P2,720,000, net of P120,000 debit balances in suppliers’ accounts. The unpaid voucher file included the following items that not had been recorded as of December 31, 2019:
a) Joli’s General Merchandising Company – P112,000 merchandise shipped on December 31, 2019, FOB Buyer; received on January 10, 2020.
b) Matthias Suppliers, Inc. – P96,000 merchandise shipped on December 26, 2019, FOB Supplier; received on January 16, 2020.
c) Tang Super Lines Services, Inc. – P72,000 janitorial services for the three-month period ending January 31, 2020.
d) Meralco – P33,600 electric bill covering the period December 16, 2019 to January 15, 2020.
On December 28, 2019, a supplier authorized HAVE MERCY to return goods billed at P80,000 and shipped on December 20, 2019. The goods were returned by HAVE MERCY on December 28, 2019, but the P80,000 credit memo was not received until January 6, 2020.

2,800,800

2,856,000

2,920,800

2,961,600

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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