44. Pineapple Company provided the following information on December 31, 2020: • Accounts payable amounted to P500,000 and accrued expenses totaled P300,000 on Dec. 31, 2020. • On Dec. 15, 2020 the entity declared a cash dividend on P7 per share on 100,000 outstanding shares, payable on Jan. 15, 2021. • On Jul. 1, 2020, the entity issued P5,000,000, 8% bonds for P4,400,000 to yield 10%. The bond mature on June 30, 2025 and pay interest annually every June 30. • The pretax financial income was P8,500,000 and taxable income was P6,000,000. The difference is due to P1,000,000 permanent difference and P1,500,000 of taxable temporary difference to reverse in 2021 • The income tax rate is 30%. The entity made estimated income tax payments during the year of P1,000,000. What amount should be reported as total current liabilities on December 31, 2020? a) P2,300,000 b) P2,500,000-answer c) P2,700,000 d) P3,500,000
only need solution
44. Pineapple Company provided the following information on December 31, 2020:
• Accounts payable amounted to P500,000 and accrued expenses totaled P300,000 on Dec. 31,
2020.
• On Dec. 15, 2020 the entity declared a cash dividend on P7 per share on 100,000 outstanding
shares, payable on Jan. 15, 2021.
• On Jul. 1, 2020, the entity issued P5,000,000, 8% bonds for P4,400,000 to yield 10%. The bond
mature on June 30, 2025 and pay interest annually every June 30.
• The pretax financial income was P8,500,000 and taxable income was P6,000,000. The difference is
due to P1,000,000 permanent difference and P1,500,000 of taxable temporary difference to
reverse in 2021
• The income tax rate is 30%. The entity made estimated income tax payments during the year of
P1,000,000.
What amount should be reported as total current liabilities on December 31, 2020?
a) P2,300,000
b) P2,500,000-answer
c) P2,700,000
d) P3,500,000
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
