Based on the foregoing facts, how much total current assets should be reported on the statement of financial position as of December 31, 20X1? II. Current Assets and Current LiabilitiesThe accounts below were taken from the unadjusted trial balance of Deco Company as ofDecember 31, 20X1:CashP124,00087,00092,000122,0006,000136,000150,00075,0004,000250,00015,000Trading securities, at costNotes receivableTrade accounts receivableAllowance for doubtful accountsMerchandise inventoryNotes payableTrade accounts payableEmployees' income tax withheldBonds payableStock dividends payableIncome tax payable28,000An analysis of the above accounts disclosed the following:1. Bank overdraft of P13,000 was deducted from cash balance.2. Trade accounts receivable was net of customers' deposit of P7,000.3. Merchandise worth P15,000 received December 30, 20X1 was included in the inventorybut was not recorded as a purchase.4. Accounts payable was net of accounts with debit balance of P12,000.5. A bank loan of P30,000 due December 31, 20X3 was included in the notes payablebalance.6. Bonds payable which was issued in 20X1 will mature in five annual instalments beginningJune 1, 20x2.7. Trading securities have a fair market value of P90,000.

Answer - Current Assets - A current asset is an item that get easily converted into cash on an…

Answered: II. Current Assets and Current…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter4: Balance Sheet: Presenting And Analyzing Resources And Financing

Section: Chapter Questions

Problem 14E

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Based on the foregoing facts, how much total current assets should be
reported on the statement of financial position as of December 31, 20X1?

II. Current Assets and Current Liabilities
The accounts below were taken from the unadjusted trial balance of Deco Company as of
December 31, 20X1:
Cash
P124,000
87,000
92,000
122,000
6,000
136,000
150,000
75,000
4,000
250,000
15,000
Trading securities, at cost
Notes receivable
Trade accounts receivable
Allowance for doubtful accounts
Merchandise inventory
Notes payable
Trade accounts payable
Employees' income tax withheld
Bonds payable
Stock dividends payable
Income tax payable
28,000
An analysis of the above accounts disclosed the following:
1. Bank overdraft of P13,000 was deducted from cash balance.
2. Trade accounts receivable was net of customers' deposit of P7,000.
3. Merchandise worth P15,000 received December 30, 20X1 was included in the inventory
but was not recorded as a purchase.
4. Accounts payable was net of accounts with debit balance of P12,000.
5. A bank loan of P30,000 due December 31, 20X3 was included in the notes payable
balance.
6. Bonds payable which was issued in 20X1 will mature in five annual instalments beginning
June 1, 20x2.
7. Trading securities have a fair market value of P90,000.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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