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
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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?
A. 20,000
35,000
С.
50,000
60,000
В.
D.
Transcribed Image Text: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? A. 20,000 35,000 С. 50,000 60,000 В. D.
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