The December 31, 2021 statement of financial position of PINK Company contained the follow current assets: Cash and cash equivalents 2,400,525 Accounts receivable, net Inventories 1,775,500 387,270 Prepaid expenses 500,000 An examination revealed that: • Cash-includes P200,000 set aside for plant expansion; cash in bank which is net of bank overdra P13,000; and petty cash fund which includes IOUS of employees, P1,500 • Accounts receivable – includes accounts with credit balances of P25,000; and accounts for wr off, P12,500 Inventories – includes goods held on consignment, P27,000; goods in transit to customers, F destinetion EO 250

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The December 31, 2021 statement of financial position of PINK Company contained the following
current assets:
Cash and cash equivalents
2,400,525
Accounts receivable, net
1,775,500
Inventories
387,270
Prepaid expenses
500,000
An examination revealed that:
Cash – includes P200,000 set aside for plant expansion; cash in bank which is net of bank overdraft,
P13,000; and petty cash fund which includes IOUS of employees, P1,500
Accounts receivable – includes accounts with credit balances of P25,000; and accounts for write
off, P12,500
Inventories – includes goods held on consignment, P27,000; goods in transit to customers, FOB
destination, P50,250
Prepaid expenses – consist of an insurance applicable for 6 months starting October 16, 2021,
P80,000
Transcribed Image Text:The December 31, 2021 statement of financial position of PINK Company contained the following current assets: Cash and cash equivalents 2,400,525 Accounts receivable, net 1,775,500 Inventories 387,270 Prepaid expenses 500,000 An examination revealed that: Cash – includes P200,000 set aside for plant expansion; cash in bank which is net of bank overdraft, P13,000; and petty cash fund which includes IOUS of employees, P1,500 Accounts receivable – includes accounts with credit balances of P25,000; and accounts for write off, P12,500 Inventories – includes goods held on consignment, P27,000; goods in transit to customers, FOB destination, P50,250 Prepaid expenses – consist of an insurance applicable for 6 months starting October 16, 2021, P80,000
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