Reference no: EM132843782
On December 31, 2021, Ivan Company showed total current assets P7,800,000 comprising cash P3,200,000, accounts receivable P2,500,000, inventory P2,000,000 and prepaid expenses P100,000.
- The cash balance included customer postdated check P150,000, employees IOU P50,000 and cash in bank per bank statement P3,000,000. Outstanding checks on December 31, 2021amounted to P200,000.
- The accounts receivable balance included customer deposit P50,000 and allowance for doubtful accounts P150,000.
Manchester Company provided the following information on December 31, 2021:
Employee income taxes withheld 900,000
Accounts receivable with credit balance 750,000
Estimated expenses of meeting warranties 500,000
Estimated damages as a result of unsatisfactory performance on a contract 1,500,000
Accounts payable 3,000,000
Deferred serial bonds, issued at par and bearing interest at 12% payable in semiannual installments of P500,000 each year, the last bond to be paid on October 1, 2027.
interest is also paid semiannually. 5,000,000
- Mont Company reported total assets P8,750,000 which included treasury shares at cost P250,000, idle machinery P100,000, trademark P150,000, allowance for inventory decline P200,000 and cumulative translation loss P300,000.
- On December 31, 2021, Ace Company had P40,000,000 note payable due on February 28, 2022. On December 31, 2021, the entity arranged a line of credit with City Bank which allows the entity to borrow up to P35,000,000 at one percent above the prime rate for three years. On February 15, 2022, the entity borrowed P25,000,000 from City Bank and used P5,000,000 additional cash to liquidate P30,000,000 note payable. The financial statements were issued on March 31, 2022.
Problem 1: What total amount should Ivan report as current assets?
Problem 2: What amount should Manchester report as total current liabilities on December 31, 2021?
Problem 3: What amount should Mont report as total assets?
Problem 4: What amount of the note payable should Ace report as current liability?