The general ledger trial balance of A Corporation includes the following statement of financial position accounts: Inventory (including inventory expected in the ordinary course of operations to be sold beyond 12 months amounting to P70,000)P110,000Trade receivables120,000Prepaid insurance8,000Listed investments held for trading purposes at fair value20,000Available for sale investments80,000Cash and cash equivalents30,000Deferred tax asset15,000Bank overdraft25,000 The amount that should be reported as current assets on A statement of financial position is

1. inventory is always a current assets even if it is reliable after 12 months period. 2.…

Answered: The general ledger trial balance of A…

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter16: Financial Statements And Closing Entries For A Corporation

Section: Chapter Questions

Problem 1MP

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The general ledger trial balance of A Corporation includes the following statement of financial position accounts:

Inventory (including inventory expected in the ordinary course of operations to be sold beyond 12 months amounting to P70,000)	P110,000
Trade receivables	120,000
Prepaid insurance	8,000
Listed investments held for trading purposes at fair value	20,000
Available for sale investments	80,000
Cash and cash equivalents	30,000
Deferred tax asset	15,000
Bank overdraft	25,000