Flawless Company’s trial balance reflected the following account balances on December 31, 2019: Cash P 1,000,000 Accounts payable, net of debit balance in suppliers’ accounts amounting to P25,000 1,000,000 Bonds payable 3,400,000 Premium on bonds payable 200,000 Deferred tax liability 400,000 Property dividends payable 400,000 Income tax payable 300,000 Note payable, due January 31, 2020 500,000 Contingent liability 150,000 Share dividends payable 320,000 Cash dividends payable 210,000 Reserve for contingencies 430,000 Estimated expense of meeting warranties 335,000 Estimated damages as a result of unsatisfactory performance on a contract 268,000 Mortgage payable 1,000,000 Loans payable (payable in five equal annual installments) 500,000 The P1,000,000 Cash account is net of bank overdraft of P300,000 and unreleased check of P100,000 and including customer’s posted check of P50,000 and sinking fund amounting to P280,000 1. How much is the total current liabilities for the year ended December 31, 2019? 2. How much is the total noncurrent liabilities for the year ended December 31, 2019?
Flawless Company’s
Cash P 1,000,000
Accounts payable, net of debit balance in suppliers’ accounts amounting to P25,000 1,000,000
Bonds payable 3,400,000
Premium on bonds payable 200,000
Deferred tax liability 400,000
Property dividends payable 400,000
Income tax payable 300,000
Note payable, due January 31, 2020 500,000
Contingent liability 150,000
Share dividends payable 320,000
Cash dividends payable 210,000
Reserve for contingencies 430,000
Estimated expense of meeting warranties 335,000
Estimated damages as a result of unsatisfactory performance on a contract 268,000
Mortgage payable 1,000,000
Loans payable (payable in five equal annual installments) 500,000
The P1,000,000 Cash account is net of bank overdraft of P300,000 and unreleased check of P100,000 and including
customer’s posted check of P50,000 and sinking fund amounting to P280,000
1. How much is the total current liabilities for the year ended December 31, 2019?
2. How much is the total noncurrent liabilities for the year ended December 31, 2019?
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