Guru Corporation found itself running out of cash to pay for its currently due liabilities, and resorted to use its receivables as a source of financing. The following transactions occurred: • The entity assigned 80% of their accounts receivable on November 2 on a notification basis. The total amount of receivable at that time is ₱1,000,000, and the proceeds of the loan is 75% of the amount assigned. • The term of the agreement includes a 1% per month interest rate every end of the month and the proceeds from the collection of account is applied first to the interest for the month. • The bank provided notifications on November 30 and December 31. The collections made by the bank on November 30 is 40% of the accounts assigned, and the collections on December 31 is 50% of the accounts assigned. The bank remitted a check on December 31 with the notification. • The entity had credit sales of ₱550,000 from November 2 to December 31. Sales returns during the same period is ₱2,000. Collections on the said sales total to ₱300,000. For how much was the cash remittance received by the entity? [A] 200,000 [B] 98,140 [C] 111,140 [D] 108,000
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Guru Corporation found itself running out of cash to pay for its currently due liabilities, and resorted to use its receivables as a source of financing. The following transactions occurred: • The entity assigned 80% of their
For how much was the cash remittance received by the entity? [A] 200,000 [B] 98,140 [C] 111,140 [D] 108,000
Step by step
Solved in 3 steps
