Reference no: EM133109990

Question - Samahan Factory provided the following trial balance on December 31, 2020

Cash overdraft 100,000

Accounts receivable 350,000

Inventory 600,000

Prepaid expenses 100,000

Land held for sales 1,000,000

Property plant and equipment 950,000

Accounts payable 200,000

Accrued payable 150,000

Ordinary share capital 1,500,000

Share premium 250,000

Retained earnings 800,000

Checks amounting to 300,000 were written to vendors and recorded on December 31, 2020 resulting in a cash overdraft of 100,000. The checks were mailed on January 15, 2021. Land held for sales was sold for cash on January 31, 2021. The entity issued the financial statement on March 31, 2021.

A. What total amount should be reported as current assets

a. 2,250,000

b. 2,050,000

c. 1,950,000

d. 1,250,000

B. Based on Item Samahan Factory above, what total amount should be reported as current liabilities

a. 650,000

b. 500,000

c. 350,000

d. 300,000

C. Based on Samahan Factory above, what is the total shareholders' equity

a. 2,550,000

b. 1,750,000

c. 1500,000

d. 2,300,000