Chapter 1 Problem 6-8
Requirement a
Dec. 1 Accounts receivable – assigned 1,500,000
Accounts receivable 1,500,000
1 Cash 1,250,000
Service charge 50,000
Note payable – bank 1,300,000
31 Cash 970,000
Sales discount 30,000
Accounts receivable – assigned 1,000,000
31 Interest expense (1% x 1,300,000) 13,000
Note payable – bank 957,000
Cash 970,000
Requirement b
The accounts receivable – assigned with a balance of P500,000 should be classified
as current asset and included in trade and other receivables.
The note payable – bank of P343,000 should be classified and presented as a current liability.
The company should disclose the equity in assigned accounts as follows:
Accounts receivable – assigned 500,000
Note payable – bank (343,000)
Equity in assigned accounts 157,000
No comments:
Post a Comment