China Co. is preparing its financial statement for the year ended December 31, 2020. Accounts Payable amounted to P720,000 before any necessary year-end adjustments related to the following: - At December 31, 2020, China has P100,000 debit balance in its accounts payable to US Corp., a supplier, resulting from a P100,000 advance payment for goods to be manufactured to Africa’s specifications. - Checks in the amount of P200,000 were written to vendors and recorded on December 29, 2020. The checks were picked up on January 3, 2021. What amount should China report as accounts payable in its December 31, 2020 balance sheet?
China Co. is preparing its financial statement for the year ended December 31, 2020. Accounts Payable amounted to P720,000 before any necessary year-end adjustments related to the following: - At December 31, 2020, China has P100,000 debit balance in its accounts payable to US Corp., a supplier, resulting from a P100,000 advance payment for goods to be manufactured to Africa’s specifications. - Checks in the amount of P200,000 were written to vendors and recorded on December 29, 2020. The checks were picked up on January 3, 2021. What amount should China report as accounts payable in its December 31, 2020 balance sheet?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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China Co. is preparing its financial statement for the year ended December 31, 2020. Accounts Payable amounted to P720,000 before any necessary year-end adjustments related to the following:
- At December 31, 2020, China has P100,000 debit balance in its accounts payable to US Corp., a supplier, resulting from a P100,000 advance payment for goods to be manufactured to Africa’s specifications.
- Checks in the amount of P200,000 were written to vendors and recorded on December 29, 2020. The checks were picked up on January 3, 2021.
What amount should China report as accounts payable in its December 31, 2020
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