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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
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 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  100,000

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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