Reference no: EM132917243
Question - Mercury Corp's trial balance reflected the following account balances at December 31, 2020:
Accounts Receivable (net) 24,000
Trading securities 6,000
Accumulated dep. on equipment and furniture 15,000
Allowance for doubtful accounts 6,000
Cash 11,000
Inventory 30,000
Equipment 25,000
Patent 4,000
Prepaid Expenses 2,000
Land held for future business site 18,000
1. In Mercury's December 31, 2020 balance sheet, the current asset total is?
As of December 31, 2020, the current liabilities of Bronze Company totaled P1,500,000 before any year-end adjustment relating to the following:
a) On December 19, 2020, a supplier authorized Bronze Company to return, for full credit,goods shipped and billed at P45,000 on December 9, 2020. The returned credit memo was received and recorded by Bronze Corporation on January 2, 2021.
b) During December 2020, Bronze received P75,000 from a customer as an advance payment for a merchandise which Bronze will make according to the customers' specifications. For this transaction Bronze has a 175,000 credit balance in its accounts receivable from the said customer on December 31, 2020.
c) On December 28, 2020, the company wrote and recorded checks to creditors totaling 400,000 which would cause an overdraft of P100,000 in the company's bank account on December 31, 2020. The checks were mailed on January 9, 2021.
2. What amount should Bronze Company report as total current liabilities in its December 31, 2020 statement of financial position?