Below are the account balances prepared by the bookkeeper for BSMA 3A & Company as of December

31, 20x1:
Assets Liabilities
Cash 30,000 Accounts payable 40,000
Accounts receivable, net 88,000 Notes payable 200,000
Inventory 80,000
Prepaid income tax 16,000
Prepaid assets 10,000
Investment in subsidiary 20,000
Land held for sale 56,000
Property, plant and equipment 100,000
Totals 400,000 240,000

Additional information:
- Cash consists of the following:
Petty cash fund (unreplenished petty cash expenses, ₱2,500) 4,000
Cash in bank (20,000)
Payroll fund 28,000
Tax fund 14,000
Cash to be contributed to a sinking fund set up for the retirement
of bonds maturing on December 31, 20x3 4,000
Total Cash 30,000

- Checks amounting to ₱61,000 were written to suppliers and recorded on December 30, 20x1, resulting
to a bank overdraft of ₱20,000. The checks were mailed on January 5, 20x2.

- Accounts receivable consists of the following:

Accounts receivable 80,000
Allowance for uncollectability ( 10,000)
Credit balance in customers’ accounts ( 6,000)
Selling price of unsold goods sent on consignment to QUELL, Inc.
at 120% of cost and excluded from SQUELCH’s inventory 24,000
Accounts receivable, net 88,000

- The inventory includes cost of goods amounting to ₱20,000 that are expected to be sold beyond 12
months but within the ordinary course of business. Also, the inventory includes cost of consigned
goods received on consignment from Alpha-Numerix Co. amounting to ₱10,000.
- Prepaid income tax represents excess of payments for quarterly corporate income taxes during 20x1
over the actual annual corporate income tax as of December 31, 20x1.
- Prepaid assets includes a ₱4,000 security deposit on an operating lease which is expected to expire
on March 31, 20x3. The security deposit will be received on lease expiration.
- The land qualified for classification as “asset held for sale” under PFRS 5 Non-current Assets Held for
Sale and Discontinued Operations as of December 31, 20x1.
- Accounts payable is net of ₱12,000 debit balance in suppliers’ accounts. Accounts payable includes
the cost of goods held on consignment from Alpha-Numerix Co. which were included in inventory.
- The notes payable are dated July 1, 20x1 and are due on July 1, 20x4. The notes payable bears an
annual interest rate of 10%. Interest is payable annually.

(Answer format should be: ###,###. Space for your supporting solution is provided. No solution, No
score. )

SOLVE for Adjusted:

1. Cash balance
2. Accounts Receivable, net
3. Accounts Payable, net
4. Total Assets

NOTE: YOUR ANSWERS AND SOLUTIONS SHOULD BE WRITTEN ON THE PROVIDED

GOOGLE QUIZ : BSMA 3A SQ Part 2