The NOT A CHANCE Company had a bad financial condition caused by deficiency of liquid asset. On June 30, 2020, the following information was available: The assets amounted to P520,000 (includes cash - 20,000; accounts receivable – 50,000; Inventory - 230,000, equipment P 200,000, and patent for the balance). The liabilities to be liquidated amounted to 550,000 (salaries – 20,000; taxes payable 65,000; accounts payable 100,000 and notes payable 365,000) During the six-month period ending December 31, 2020, the trustee sold all inventories for P180,000 cash, collected only 80% of the accounts receivable with balance written off, and paid off accounts payable and all liabilities with priorities, as well as P 5,000 for estate administration expense. 15.How much is the ending cash balance on December 31, 2020? А. C. 50,000 20,000 35.000 B. D. 60.000

The NOT A CHANCE Company had a bad financial condition caused by deficiency of liquid asset. On June 30, 2020, the following information was available: The assets amounted to P520,000 (includes cash - 20,000; accounts receivable – 50,000; Inventory - 230,000, equipment P 200,000, and patent for the balance). The liabilities to be liquidated amounted to 550,000 (salaries – 20,000; taxes payable 65,000; accounts payable 100,000 and notes payable 365,000) During the six-month period ending December 31, 2020, the trustee sold all inventories for P180,000 cash, collected only 80% of the accounts receivable with balance written off, and paid off accounts payable and all liabilities with priorities, as well as P 5,000 for estate administration expense. 15.How much is the ending cash balance on December 31, 2020? А. C. 50,000 20,000 35.000 B. D. 60.000

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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