Canton Cave Company provided the following schedule of liabilities on December 31, 2014:P6,500,000Accounts payableUnearned revenue5,000,000Notes payable - bank (a)8,000,000Bonds payable (b)4,000,000Additional Information:a. Bank notes payable include two separate notes payable to First Bank:• A P3 million, 10% note issued March 1, 2014, payable on demand. Interest is payable every 6months.• A one-year term note amounting to P5 million, with 11% interest issued on January 2, 2014.b. The bonds payable are 10-year, 8% bonds, issued June 30, 2013. Interest is payable semi-annuallyon June 30 and December 31.C.There is a pending litigation against Canton Cave Company because for copyright issues. The legalcounsel estimates that the company would have to pay P4,000,000 in damages expected to besettled within 12 months. He assesses that the chance the company would pay is probable.d. During the year, Canton Cave introduced a new product that carries a warranty against defects.Expected warranty claims amount to 8% of total sales. Total sales for 2014 is 2,000,000 and theactual warranty expenditures is 70,000. The company recorded actual warranty expenditures directlyas warranty expense.Present a partial statement of financial position, showing the current liabilities and noncurrent liabilitiesand the total liabilities. Follow the format below. (10 pts.)Format:Statement of Financial PositionAs of LiabilitiesCurrent liabilitiesXXXXNoncurrent liabilitiesXXXXTOTAL LIABILITIESTotal current liabilitiesTotal noncurrent liabilities

Answered: le include tv 1, 10% note term note a…

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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KKK Inc. provided the following schedule of liabilities on December 31,2021: Accounts payable P6,500,000 Bank note payable – 10% 3,000,000 Bank note payable – 11% 5,000,000 Interest payable 150,000 Mortgage note payable – 10% 2,000,000 Bonds payable 4,000,000 --- The P3,000,000, 10% was issued March 1,2021, payable on demand. Interest is payable every six months. ---The one-year P5,000,000,11% note was issued January 15,2021. On December 31,2021, KKK negotiated written agreement with the bank to replace the note with a 2-year. P5,000,000 note to be issued January 15,2022. ---The 10% mortgage note was issued October 1,2018, with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly…
Problem 4:Canton Cave Company provided the following schedule of liabilities on December 31, 2019:Accounts payable 6,500,000Notes payable-bank 8,000,000Interest payable 150,000Mortgage payable-10% 2,000,000Bonds payable 4,000,000*Bank notes payable include two separate notes payable to First Bank A ₱ 3, 000,000, 10% note issued March 1, 2018, payable on demand. Interest is payable every six months. A one-year, ₱5,000,000, 11% note issued January 2, 2019. On December 31, 2019, Canton Cave negotiated a written agreement with First Bank to replace the note with a 2-year, ₱5,000,000, 10% note issued January 2, 2020.*The 10% mortgage note was issued October 1, 2016 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest within 10 days of the date the payment is due.On December 31, 2019, Canton Cave is three months behind in paying its required initial payment.The bonds payable are 10-year, 8% bonds,…
Cicamore Company had the following information related to its current liabilities for the year ended December 31, 2022. Notes payable arising from 5-year bank loans, on which a security valued at P600,000 have been pledge as security, due on December 31, 2023. P500,000 Accounts payable, net of debit balances of P50,000 770,000 Trade notes payable due in 15 months 280,000 Salaries payable 90,000 Employee income tax withheld 11,000 Bonus and profit sharing payable 70,000 Liability for income taxes 250,000 Cash dividends payable 100,000 Share dividend payable 150,000 Dividend in arrears on preference shares 200,000 How much should Cicamore report as current liabilities in its December 31, 2022 statement of financial position?
Val Company disclosed the following information on December 31, 2021: Accounts Payable P20,000 Notes Payable P40,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Note: 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 (not reporting period), as seen in its loan agreement, Compute for the non-current liabilities as of December 31, 2021 *Be reminded of the 12% interest whether you include it or not.
Lappy Company disclosed the following information on December 31, 2021: Accounts Payable P20,000 Notes Payable P40,000 Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022 P1,000,000 Compute for the CURRENT LIABILITIES as of December 31, 2021 *take note of the interest-bearing note
Cavalier Company provided the following information December 31, 2019: Accounts payable Notes payable - bank Interest payable Mortgage note payable - 10% Bonds payable 6,500,000 8,000,000 150,000 2,000,000 4,000,000 Bank notes payable include two separate notes payable to First Bank. A P3,000,000, 10% note issued March 1, 2018, payable on demand. Interest is payable every six months. A one-year, P5,000,000, 11% note issued January 2, 2019. On December 31, 2019, the entity negotiated a written agreement with First Bank to replace the note with a 2-year, P5,000,000, 10% note to be issued January 2, 2020. The 10% mortgage note was issued October 1, 2018 with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within 10 days of the date the payment is due. On December 31, 2019, the entity is three months behind in paying the required interest payment. The bonds payable are 10-year, 8% bonds,…
CC had the following information related to its current liabilities for the year ended December 31, 2022. Notes payable arising from 5-year bank loans, on which a security valued at P600,000 have been pledge as security, due on December 31, 2023. P500,000 Accounts payable, net of debit balances of P50,000 770,000 Trade notes payable due in 15 months 280,000 Salaries payable 90,000 Employee income tax withheld 11,000 Bonus and profit sharing payable 70,000 Liability for income taxes 250,000 Cash dividends payable 100,000 Share dividend payable 150,000 Dividend in arrears on preference shares 200,000 How much should CC report as current liabilities in its December 31, 2022 statement of financial position?
On November 1, 2018, an entity borrowed P1,000,000 from Universe Global Bank and issued a promissory note for the same. The term of the loan is one year and discounted at 12%. The entity pledged accounts receivable of P2,000,000 to secure the loan. On November 1, 2018, what is the entry to record the pledge of accounts receivable? a. No entry needed b. Credit to accounts receivable, P880,000 c. Credit to accounts receivable, P1,000,000 d. Credit to accounts receivable, P2,000,000
On December 31, 2021, Yohan Company provided the following information: Accounts Payable, Including deposits and advances from customer of P250,000 1,250, 000 Notes payable, including note payable to bank due on December 31, 2022 of 500,000 1.500,000 Share dividend payable 400,000 Credit balances in customer's account 200,000 Serial bonds payable in semi annual installment of 500,000 5,000,000 Accrued interest on bonds payable 150,000 Contested BIR tax assessment - possible obligation 300,000 Unearned rent income 100,000 Required: Compute the total current liabilities on December 31,2021
The following balances were reported by BTS Company on December 31, 2020 and 2019: 2020: Accounts payable - P3,500,000; Notes payable - P4,000,000 2019: Accounts payable - P2,500,000; Notes payable - P1,500,000 On July 1, 2020, the company issued a one-year, 12% note for a bank loan of P1,000,000. All other notes payable arose from purchases of merchandise. Total payment to suppliers in 2020 amounted to P11,000,000, after purchase discount of P250,000. During 2020, company returned defective merchandise costing P500,000. What is the amount of gross purchases for 2020 under the accrual basis?
Company A received a 5-year Non-interest bearing note payable to Company A on December 31, 2024, P 5,000,000. The market interest rate for this type of transaction is 12%. What is the amount that shall be reported on the statement of financial position on December 31, 2022, as Notes Receivable (net of discount or premium)?
On December 31, 2021, the bookkeeper of Grand Company provided the following information: Accounts payable, including deposits and advances from customers Of P500,000 Notes payable, including note payable to bank due on December 31, 2023 for P1,000,000 Share dividends payable P2,500,000 3,000,000 800,000 Credit balance in customers' accounts 400,000 Serial bonds, payable in semi annual installments of P1,000,000 Accrued interest on bonds payable 10,000,000 300,000 Contested BIR tax assessment 600,000 Unearned rent income 100,000 In the December 31, 2021 statement of financial position, how much current liabilities should be reported?

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le include tv 1, 10% note term note a le are 10-yea