For purposes of stating the working capital of Raul Trading on December 31, 2021, the following data are submitted: Cash on hand and in bank P 610,000 Petty cash 6,000 Notes receivable 500,000 Accounts receivable 1,200,000 Merchandise inventory 1,300,000 Prepaid expenses 90,000 Accounts payable P 650,000 Notes payable (due annually at P1,000,000 payable every May 31) 2,000,000 Accrued expenses 80,000 How much total current liabilities should Raul Trading present in its statement of financial position on December 31, 2021?

For purposes of stating the working capital of Raul Trading on December 31, 2021, the following data are submitted: Cash on hand and in bank P 610,000 Petty cash 6,000 Notes receivable 500,000 Accounts receivable 1,200,000 Merchandise inventory 1,300,000 Prepaid expenses 90,000 Accounts payable P 650,000 Notes payable (due annually at P1,000,000 payable every May 31) 2,000,000 Accrued expenses 80,000 How much total current liabilities should Raul Trading present in its statement of financial position on December 31, 2021?

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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Question

For purposes of stating the working capital of Raul Trading on December 31, 2021, the following data are submitted:
Cash on hand and in bank
P 610,000
Petty cash
6,000
Notes receivable
500,000
Accounts receivable
1,200,000
Merchandise inventory
1,300,000
Prepaid expenses
90,000
Accounts payable
P 650,000
Notes payable (due annually at
P1,000,000 payable every May 31) 2,000,000
Accrued expenses
80,000
How much total current liabilities should Raul Trading present in its statement of financial position on December 31, 2021?
(A) P1,730,000
B P2,730,000
P1,370,000
D) P2,370,000

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