Reference no: EM132937180

Questions -

Q1) ABC Company has the following receivable balances as of December 31,2020: Notes Receivable due on December 31,2022 P 750,000 Notes Receivable due on December 31,2023 P 1,000,000 Accounts receivable P 1,500,000

The notes receivable due on December 31,2022 is a trade receivable and the other one which is due on December 31,2023 is a receivable from one of the officers of ABC Company.

The normal operating cycle of ABC Company is 3 years. What is the total amount of receivables that must be presented as part of the current assets?

-3,250,000

-2,250,000

-2,500,000

-1,500,000

Q2) BTS Company banks with SoK Bank and prepares reconciliation of the bank and book balances on a regular monthly basis. The December 31, 2016 reconciliation shows a balance per bank of P581,050, balance per books of P627,000, outstanding checks of P84,300, deposits in transit of P120,000, interest earned on the bank balance of P1,250, and service charges of P400. Included in the bank statement was a canceled check which the company had failed to record. The check was in payment of accounts payable. What is the amount of the unrecorded check issued by the company in payment of accounts payable?

-P11,900

-P11,000

-P11,100

-P8,600

Q3) TWICE Company reported total cash and cash equivalents of P3,650,000 on December 31, 2020. The following items are included in its cash and cash equivalents. (1) Investment securities of P200,000, these investments are actively traded in the market. (2) TWICE Company has agreed to maintain a cash balance of P100,000 in one of its banks (this amount is not legally restricted as to withdrawal). (3) Investment securities of P500,000. These securities are commercial paper. The term of the papers is six months and they were purchased on November 1 at which time they had three months to go until they mature. How much is the correct amount of cash and cash equivalents that TWICE Company should report in its December 31, 2020 statement of financial position?

-3,950,000

-3,650,000

-3,450,000

-4,850,000