An entity provided the following information on December 31, 2020: · Accounts payable amounted P1,500,000 · On December 15, 2020, the entity declared a cash dividend of P20 per share on 100,000 outstanding shares, payable on January 15, 2021 · On July 1, 2020, the entity issued P5,000,000, 8% bonds for P4,400,000 to yield 10%. The bonds 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 taxable temporary difference to reverse 2021. The income tax rate is 30%. The entity made estimated income tax payments during the current year of P1,000,000. What amount should be reported as total current liabilities on December 31, 2020?
An entity provided the following information on December 31, 2020: · Accounts payable amounted P1,500,000 · On December 15, 2020, the entity declared a cash dividend of P20 per share on 100,000 outstanding shares, payable on January 15, 2021 · On July 1, 2020, the entity issued P5,000,000, 8% bonds for P4,400,000 to yield 10%. The bonds 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 taxable temporary difference to reverse 2021. The income tax rate is 30%. The entity made estimated income tax payments during the current year of P1,000,000. What amount should be reported as total current liabilities on December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An entity provided the following information on December 31, 2020:
· Accounts payable amounted P1,500,000
· On December 15, 2020, the entity declared a cash dividend of P20 per share on 100,000 outstanding shares, payable on January 15, 2021
· On July 1, 2020, the entity issued P5,000,000, 8% bonds for P4,400,000 to yield 10%. The bonds 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 taxable temporary difference to reverse 2021. The income tax rate is 30%. The entity made estimated income tax payments during the current year of P1,000,000.
What amount should be reported as total current liabilities on December 31, 2020?
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