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 o 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 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 Inventory per physical count at December 31, 2020 was 437,000 Bonds payable 900,000 Interest expense 20,400 Ordinary share capital 1,700,000 Required: Compute the adjusted balance of the following (show supporting computations) Rent Revenue 108,000 1. Accounts receivable 6. Allowance for uncollectible accounts Additional information: 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, A B C D 2020, the balance of property and equipment was 2,300,000 1. Accounts Receivable 531,000 590,000 690,000 790,000 2. Allowance for Uncollectible Accounts | 53,100 59,000 69,000 79,000 3. Prepaid Insurance 14,850 17,250 19,950 24,450 4. Prepaid Rent 180,000 120,000 60,000 40,000 5. Interest Receivable 63,000 31,500 26,250 21,000 6. Trading Securities 693,000 700,000 707,000 726,250 7. Plant and Equipment at cost 860,000 1,560,000 |2,300,000 3,860,000 8. Accumulated Depreciation 386,000 459,000 533,400 607 400 9. Total current liabilities 1,145,700 245,700 215,700 155,700 10. Cost of sales 1,576,200 1,730,250 1,620,200 1,483,000 11. Selling and Administrative e 1,065,350 1,060,250 1,085,750 1,138,750 Expenses
