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Bonds payable (maturing in 5 equal annual installments of P400,000) 2,000,000 Reserve for contingencies Held for trading financial liabilities Income tax payable Accrued expenses Stock dividends payable 50,000 100,000 100,000 10,000 24,000 How much is the total current liabilities? а. 1,120,000 b. 1,210,000 c. 1,220,000 d. 1,238,000

Bonds payable (maturing in 5 equal annual installments of P400,000) 2,000,000 Reserve for contingencies Held for trading financial liabilities Income tax payable Accrued expenses Stock dividends payable 50,000 100,000 100,000 10,000 24,000 How much is the total current liabilities? а. 1,120,000 b. 1,210,000 c. 1,220,000 d. 1,238,000

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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Current Liabilities 43 Bonds payable (maturing in 5 equal annual installments of P400,000) 2,000,000 Reserve for contingencies Held for trading financial liabilities Income tax payable Accrued expenses Stock dividends payable 50,000 100,000 100,000 10,000 24,000 How much is the total current liabilities? а. 1,120,000 b. 1,210,000 c. 1,220,000 d. 1,238,000 3. Keeper Co. has the following liabilities on December 31, 20x1: Trade and other payables Note payable (issued 3 yrs. ago, maturing on Dec. 31, 20x2) Serial bonds payable (next annual principal installment of P800,000 due July 1,20x2) 2,000,000 6,000,000 5,600,000 On February 28, 20x2, Keeper Co. entered into a non-cancelable agreement with the lender to refinance the note payable on a long- term basis, on readily determinable terms that have not yet been implemented. Keeper Co.'s 20x1 financial statements were authorized for issue on March 31, 20x2. What amount of current liabilities should Keeper Co. report in its 20x1 statement of financial position? а. 2,000,000 b. 2,800,000 c. 8,800,000 d. 13,600,000 4. Pam, Inc. has P1,000,000 notes payable due on June 15, 20x6. On December 31, 20x5, Pam signed an agreement to roll over the P1,000,000 note on a long-term basis. Under the agreement, the amount that can be rolled-over cannot exceed 80% of the value of the collateral Pam was providing. As of December 31, 20x5, the value of the collateral was P1,200,000 and was not expected to fall below this amount during 20x6. In its December 31, 20x5, balance sheet, Pam should classify the notes payable as Short-term Short-term Long-term 1,000,000 Long-term 800,000 c. 200,000 d. 1,000,000 а. 0 b. 40,000 (AICPA - adapted) 960,000
Transcribed Image Text:Current Liabilities 43 Bonds payable (maturing in 5 equal annual installments of P400,000) 2,000,000 Reserve for contingencies Held for trading financial liabilities Income tax payable Accrued expenses Stock dividends payable 50,000 100,000 100,000 10,000 24,000 How much is the total current liabilities? а. 1,120,000 b. 1,210,000 c. 1,220,000 d. 1,238,000 3. Keeper Co. has the following liabilities on December 31, 20x1: Trade and other payables Note payable (issued 3 yrs. ago, maturing on Dec. 31, 20x2) Serial bonds payable (next annual principal installment of P800,000 due July 1,20x2) 2,000,000 6,000,000 5,600,000 On February 28, 20x2, Keeper Co. entered into a non-cancelable agreement with the lender to refinance the note payable on a long- term basis, on readily determinable terms that have not yet been implemented. Keeper Co.'s 20x1 financial statements were authorized for issue on March 31, 20x2. What amount of current liabilities should Keeper Co. report in its 20x1 statement of financial position? а. 2,000,000 b. 2,800,000 c. 8,800,000 d. 13,600,000 4. Pam, Inc. has P1,000,000 notes payable due on June 15, 20x6. On December 31, 20x5, Pam signed an agreement to roll over the P1,000,000 note on a long-term basis. Under the agreement, the amount that can be rolled-over cannot exceed 80% of the value of the collateral Pam was providing. As of December 31, 20x5, the value of the collateral was P1,200,000 and was not expected to fall below this amount during 20x6. In its December 31, 20x5, balance sheet, Pam should classify the notes payable as Short-term Short-term Long-term 1,000,000 Long-term 800,000 c. 200,000 d. 1,000,000 а. 0 b. 40,000 (AICPA - adapted) 960,000
PROBLEM 3: MULTIPLE CHOICE – COMPUTATIONAL 1. The account balances of Boast Co. include the following: Notes payable Interest payable 14,000 PhilHealth cont. payable 12,000 Cash dividends payable 2,000 Share dividends payable 30,000 Lease liability 10,000 Bonds payable 6,000 Premium on bonds payable 20,000 4,000 Security deposit 12,000 8,000 6,000 70,000 240,000 Unearned revenue Rent payable Warranty obligation Discount on notes receivable Income taxes payable Obligation to deliver a fixed number of own shares worth 100,000 a fixed amount of cash Ordinary shares issued 4,000 Redeemable preference 28,000 shares issued 20,000 Constructive obligation 22,000 How much is Boast Co.'s total financial liabilities? а. 426,000 b. 438,000 c. 444,000 d. 538,000 2. Proud Co.'s records on Dec. 31, 20x1 show the following account balances: Trade accounts payable (net of P10,000 debit balance in supplier's account and P8,000 unreleased checks drawn) Deferred tax liability (expected to reverse in 20x2) 10%, 4-year note payable issued on Aug. 1, 20x1 600,000 10,000 240,000
Transcribed Image Text:PROBLEM 3: MULTIPLE CHOICE – COMPUTATIONAL 1. The account balances of Boast Co. include the following: Notes payable Interest payable 14,000 PhilHealth cont. payable 12,000 Cash dividends payable 2,000 Share dividends payable 30,000 Lease liability 10,000 Bonds payable 6,000 Premium on bonds payable 20,000 4,000 Security deposit 12,000 8,000 6,000 70,000 240,000 Unearned revenue Rent payable Warranty obligation Discount on notes receivable Income taxes payable Obligation to deliver a fixed number of own shares worth 100,000 a fixed amount of cash Ordinary shares issued 4,000 Redeemable preference 28,000 shares issued 20,000 Constructive obligation 22,000 How much is Boast Co.'s total financial liabilities? а. 426,000 b. 438,000 c. 444,000 d. 538,000 2. Proud Co.'s records on Dec. 31, 20x1 show the following account balances: Trade accounts payable (net of P10,000 debit balance in supplier's account and P8,000 unreleased checks drawn) Deferred tax liability (expected to reverse in 20x2) 10%, 4-year note payable issued on Aug. 1, 20x1 600,000 10,000 240,000
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