DE MATTA NICKA SUZANE C.

BSA22A1

INTERMEDIATE ACCOUNTING

Answers.

Cash and cash equivalents P700,000

Accounts Receivable 1,750,000
Inventories 800,000
Total 3,250,000
Less: Goods for consignee taken out 250,000

Add: total cost of goods to be included in inventory 200,000

(250,000/125%)

Current assets 3,200,000

1. REQUIRED: How much is the total amount of current assets of Picolo at year-end?

2.

Issuance of share capital P 8,000,000

Revenue from sales and consulting 10,800,000

Cost and expense (9,400,000)

Dividend payables (500,000)
Liabilities increased 1,100,000
Total asset P10,000,000
3. REQUIRED: Compute for the following assets:

1. Cash and cash equivalents

2. Trade receivables

3. Prepaid expenses

4.Property, plant and equipment (net)

1. Cash and cash equivalents

Cash in Bank 700,000
Money market replacement 500,000
Total 1,200,000

2. Trade Receivables
Accounts Receivable 800,000
Notes Receivable 200,000
Total 1,000,000

3. Prepaid Expenses
Office Supplies 50,000

4. Property, Plant and Equipment

Accumulated
Cost Carrying amount
Depreciation
Land 1,000,000 - 1,000,000
Building 3,000,000 300,000 2,700,000
Office equipment 250,000 250,000
Total 4,250,000 300,000 3,950,000