Problem 1:RM Company disclosed the following information on December 31, 2021:Accrued rent expenseShare dividends payableAccounts receivable, after deducting credit balances of customers'accounts amounting to P42, 500Estimated premium liabilityCash in bank, net of bank overdraft of P22,650oDeferred tax liabilityAccounts payable, net of debit balances in suppliers' accountsamounting to P8,310Unearned interest income54,000750,000179,30065,800481,900215,50095,420225,000Mortgage payable, issued on March 1, 2012, maturing after 10 yearsNotes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022Cash dividends payableSSS payableSerial bonds payable in 5 yearly installment of P250,000 payableevery October 31Estimated damages because of a supposed unsatisfactoryperformance on a contract, a possible obligationIncome tax payableNotes payable1,500,0001,000,000520,00057,1001,250,00075,000138,500460,000Requirements:Compute for the current liabilities as of December 31, 2021Compute for the non-current liabilities as of December 31, 20213. In the case of the notes payable due to bank, supposing the entity has the discretion to refinance theobligation for at least 12 months after the given maturity date, as seen in its loan agreement,A. Compute for the current liabilities as of December 31, 2021.B. Compute for the non-current liabilities as of December 31, 2021.1.2.

Liabilities Current liabilities are one of the important section in the preparation of the balance…

Estimated damages because of a supposed unsatisfactory performance on a contract, a possible obligation Income tax payable Notes payable 75,000 138,500 460,000 Requirements: Compute for the current liabilities as of December 31, 2021 Compute for the non-current liabilities as of December 31, 2021 In the case of the notes payable due to bank, supposing the entity has the discretion to refinance the obligation for at least 12 months after the given maturity date, as seen in its loan agreement, A. Compute for the current liabilities as of December 31, 2021. B. Compute for the non-current liabilities as of December 31, 2021. 1. 2. 3.

Estimated damages because of a supposed unsatisfactory performance on a contract, a possible obligation Income tax payable Notes payable 75,000 138,500 460,000 Requirements: Compute for the current liabilities as of December 31, 2021 Compute for the non-current liabilities as of December 31, 2021 In the case of the notes payable due to bank, supposing the entity has the discretion to refinance the obligation for at least 12 months after the given maturity date, as seen in its loan agreement, A. Compute for the current liabilities as of December 31, 2021. B. Compute for the non-current liabilities as of December 31, 2021. 1. 2. 3.

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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