An entity records on December 31, 20x1 show the following account balances: Trade accounts payable (net of P10,000 debit balance in 600,000 Supplier’s account and P8,000 unreleased checks drawn) Deferred tax liability (expected to reverse in 20x2) 10,000 10%,4-year note payable issued on August 1,20x1 240,000 Bonds Payable (maturing in 5 equal annual installments of P400,000)2,000,000 Reserve for contingencies 50,000 Held for trading financial liabilities 100,000 Income tax payable 100,00
An entity records on December 31, 20x1 show the following account balances: Trade accounts payable (net of P10,000 debit balance in 600,000 Supplier’s account and P8,000 unreleased checks drawn) Deferred tax liability (expected to reverse in 20x2) 10,000 10%,4-year note payable issued on August 1,20x1 240,000 Bonds Payable (maturing in 5 equal annual installments of P400,000)2,000,000 Reserve for contingencies 50,000 Held for trading financial liabilities 100,000 Income tax payable 100,00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An entity records on December 31, 20x1 show the following account
Trade accounts payable (net of P10,000 debit balance in 600,000
Supplier’s account and P8,000 unreleased checks drawn)
10%,4-year note payable issued on August 1,20x1 240,000
Bonds Payable (maturing in 5 equal annual installments of P400,000)2,000,000
Reserve for contingencies 50,000
Held for trading financial liabilities 100,000
Income tax payable 100,000
Accrued expenses 10,000
Stock dividends payable 24,000
How much is the total current liabilities?
a. 1,120,000 b. 1,210,000 c. 1,220,000 d. 1,238,000
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