Question
Audit of Financial Statements 15. The following is a June 30, 2017, post-closing trial balance for East Company, an SME: Account Title Cash Short-term
Audit of Financial Statements 15. The following is a June 30, 2017, post-closing trial balance for East Company, an SME: Account Title Cash Short-term investments Accounts receivable Prepaid expenses Land Buildings Accumulated depreciation - buildings Equipment Accumulated depreciation - equipment Debits P 830,000 650,000 2,800,000 320,000 750,000 Credits 3,200,000 P 1,600,000 2,650,000 Accounts payable Accrued expenses Notes payable Mortgage payable Ordinary shares Retained earnings Totals Additional Information 1,200,000 1,730,000 450,000 1,000,000 2,500,000 1,000,000 1,720,000 P 11,200,000 P 11,200,000 1. The short-term investments account includes P180,000 in treasury bills purchased in May. The bills mature in July. 2. The accounts receivable account consists of the following: a. Amounts owed by customers b. Allowance for uncollectible accounts - trade customers c. Nontrade note receivable (due in three years) d. Interest receivable on note (due in four months) Total P2,250,000 (150,000) 650.000 50,000 P2,800,000 3. The notes payable account consists of two notes of P500,000 each. One note is due on September 30, 2017. and the other is due on November 30, 2018.
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