Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are the balances of accounts of PNC Inc. as of December 31, 2020: Salaries accrued as of December 31, 2020 42,000 remains unpaid

image text in transcribed
The following are the balances of accounts of PNC Inc. as of December 31, 2020: Salaries accrued as of December 31, 2020 42,000 remains unpaid Cash 482,100 Retained earnings 873,800 Insurance expense account contains the premium costs of these policies: Accounts receivable 690,000 Sales 2,220,000 Policy #1 remaining cost of P15,300, one year term, taken out on May 1, 2019 Allowance for uncoll. accounts 5,000 Purchases 1,500,000 o Policy #2 original cost of 16,200, 3-year term, taken out on October 1, 2020 Inventory 547,200 Purchase discounts 34,000 o Policy #3 original cost of 7,800, one-year term taken out on January 1, 2019 Prepaid rent 180,000 Transportation out 110,000 On August 1, 2020, the company purchased as financial asset at fair value through profit or Trading securities - Ethan bonds 700,000 Transportation in 44,000 loss, 700 P1,000 9% bonds of Ethan Co. at face value. The bonds mature on August 1, 2025. Interest payment dates are July 31 and January 31. The bonds sell at 101 at December 31, Plant and equipment 1,560,000 Salaries and wages 320,000 2020 Accumulated depreciation 147,400 Insurance expense 39,300 The company rented a warehouse on April 30, 2020 for P15,000 a month paying 180,000 in advance Accounts payable 113,700 Miscellaneous expense 8,900 900,000 Inventory per physical count at December 31, 2020 was 437,000 Bonds payable Interest expense 20,400 Ordinary share capital 1,700,000 Rent Revenue 108,000 Required: Compute the adjusted balance of the following (show supporting computations) 1. Accounts receivable Additional information: 6. Allowance for uncollectible accounts 2. Prepaid rent 7. Accumulated depreciation Based on aging of receivables it is estimated that 10% will be uncollectible 3. Prepaid insurance 8. Cost of sales Collection of accounts of 100,000 was incorrectly credited to sales on December 28, 2020 4. Total current liabilities 9 . Trading securities The company received 108,000 rent from its lessee for an 18-month operating lease on September 30, 2020 starting on that date. 5. Interest receivable 10. Plant and equipment Depreciation rate is 20% per annum. Acquisitions and retirements during a year are Choices: depreciated at half this rate. There were no purchases during the year. On December 31, Correct answer: 2020, the balance of property and equipment was 2,300,000 1. 590,000 6. 59,000 2. 60,000 7. 533,400 Kindly show the solution of each number 3.14,850 8. 1,620,200 4. 245,700 9. 707,000 5. 26,250 10. 1,560,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Forensic And Investigative Accounting

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

10th Edition

0808056301, 9780808056300

More Books

Students also viewed these Accounting questions

Question

Do not get married, wait until I come, etc.

Answered: 1 week ago

Question

Do not come to the conclusion too quickly

Answered: 1 week ago

Question

Engage everyone in the dialogue

Answered: 1 week ago