59.On December 31, a corporation had a working capital (current) ratio of 2, and reported the following accounts.AssetsEquitiesCashP 4,000Accounts PayableP 2,000Accounts receivable13,000Wages payable6,000Inventory6,600Interest payable14,000Prepaid insurance1,000Bonds payable14,000Equipment (net)24,000Retained earnings2,600Therefore, the balance in allowance for doubtful accounts was: Aa.P600b. P300c. P200d. P060.A corporation reported the following information in its income statement:Sales revenue (none on credit)P 70,000Cost of goods sold (paid in cash)40,000Gross margin on sales30,000Depreciation expense(4,000)Amortization expense(1,000) Wage expense ( paid in cash)(2,500)Income before taxes22,500Income taxes (20%) (paid in cash)(4,500)Net incomeP 18,000
The corporation should report the following amount on its statement of cash flows for net cash from operating activities: D61.La Mesa Tables Co. uses a four-column bank reconciliation. The bank statement reports May payments of P13,150, including service charges of P200. At the beginning of May, there were P900 of checks outstanding. At the end of May, there were P1,200 of checks outstanding. Before recording the bank service charges, La Mesa Tables must have recorded May payments of: A62.Bruce Cycle Shop sells a bicycle to E. Nygma, a customer who uses Express Charge (a national credit card, but not issued by a bank). In recording this sale, Bruce Cycle Shop should report: B63.Deo Company used the balance sheet approach in estimating uncollectible accounts expense. The company prepares an adjusting entry to recognize this expense at the end of each month. During the month of July. The company wrote off a P1,000 receivable and made no recoveries of previous write-offs. Following the adjusting entry for July, the credit balance in the Allowance for Doubtful accounts was P2,500 larger than it was on July 1.What amount of uncollectible account expense was recorded for July? Da.P2,500b. P1,000c. P1,500d. P3,50064.A listing of the Emmanuel Company’s inventory items at the end of 2005 totals P95,000. Included in this amount are the following items:Merchandise in transit as of 12/21/2005, purchased FOB shipping point………………...P 6,800Goods held by Emmanuel as consignee from Christopher………………………………….5,000Goods out on consignment, at cost plus 50% mark-up on cost……………………………...6,000What is the peso amount of Emmanuel’s 2005 ending inventory that should reported on the balance sheet? D
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