2. The following accounts and their balances appear in an unadjusted trial balance of BT21 Company as of December 31, 2020. Cash, P400,000; Accounts receivable, P2,000,000; Inventory, P500,000; Accounts payable, P300,000; Notes payable, P200,000. · The cash account includes collection in January 2021 of P200,000 account from customer who was given a cash discount of P10,000. · It also includes a January 2021 cash sale of P50,000. Gross profit on the sale was 40%. · From the amount collected, the company fully paid a bank loan of P100,000 with interest of P20,000 accruing January 2021. What is the correct amount of working capital on December 31, 2020?
2. The following accounts and their balances appear in an unadjusted trial balance of BT21 Company as of December 31, 2020. Cash, P400,000; Accounts receivable, P2,000,000; Inventory, P500,000; Accounts payable, P300,000; Notes payable, P200,000. · The cash account includes collection in January 2021 of P200,000 account from customer who was given a cash discount of P10,000. · It also includes a January 2021 cash sale of P50,000. Gross profit on the sale was 40%. · From the amount collected, the company fully paid a bank loan of P100,000 with interest of P20,000 accruing January 2021. What is the correct amount of working capital on December 31, 2020?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter6: Cash And Receivables
Section: Chapter Questions
Problem 6MC: Prior to adjustments, Barrett Companys account balances at December 31, 2019, for Accounts...
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2. The following accounts and their balances appear in an unadjusted
Cash, P400,000;
· The cash account includes collection in January 2021 of P200,000 account from customer who was given a cash discount of P10,000.
· It also includes a January 2021 cash sale of P50,000. Gross profit on the sale was 40%.
· From the amount collected, the company fully paid a bank loan of P100,000 with interest of P20,000 accruing January 2021.
What is the correct amount of
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