How much should be reported in the December 31, 2020 balance sheet as total liabilities? *see attached picturea. P 7,210,000b. P 7,005,000c. P 6,960,000d. P 6,672,000 HELLO reported the following items on its December 31, 2020 trial balance:· Accounts Payable, P1,089,000Advances to officers and employees, P45,000· Unearned Income, P288,000· Outstanding gift certificates issued, redeemable with merchandise, P258,000· Cash surrender value of life insurance, P75,000· Bonds payable, face value, P5,550,000Discounts on bond payable, P225,000Accrued interest receivable, P39,000

Current liabilities: Liabilities that have to be paid within one year or one operating cycle,…

Answered: HELLO reported the following items on…

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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How much should be reported in the December 31, 2020 balance sheet as total liabilities?

*see attached picture

a. P 7,210,000
b. P 7,005,000
c. P 6,960,000
d. P 6,672,000

HELLO reported the following items on its December 31, 2020 trial balance:
· Accounts Payable, P1,089,000
Advances to officers and employees, P45,000
· Unearned Income, P288,000
· Outstanding gift certificates issued, redeemable with merchandise, P258,000
· Cash surrender value of life insurance, P75,000
· Bonds payable, face value, P5,550,000
Discounts on bond payable, P225,000
Accrued interest receivable, P39,000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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