Other information: • The bank notes issued on August 1, 2021 are due on July 31, 2022 and pay interest at a rate of 10% payable at maturity. • The mortgage note is due on March 1, 2022. Interest at 9% has been paid up to December 31.(assume 9% is a realistic rate). On March 1, 2022, Mangosteen Inc. issued a new 10-year mortgage note and paid P 250,000 in cash on the principal balance and refinanced the remaining P 950,000. • Included in the accounts receivable balance at December 31, 2021 were two customers' accounts that had been overpaid and has a credit balances totaling P 18,000. The accounts were of two major customers who were expected to order more merchandise from Mangosteen Inc. and apply the overpayment to those future purchases. • On November 1, 2021, Mangosteen Inc. rented out a portion of its factory to a tenant for P 30,000 per year, payable in advance. The payment for 12 months ended in October 31, 2022 as received and was credited to rent revenue. How much is the total current liabilities of Mangosteen Inc. as of December 31, 2021? A. P1,903,000 D. P 935,000 B. P1,835,000 C. P 953,000

Other information: • The bank notes issued on August 1, 2021 are due on July 31, 2022 and pay interest at a rate of 10% payable at maturity. • The mortgage note is due on March 1, 2022. Interest at 9% has been paid up to December 31.(assume 9% is a realistic rate). On March 1, 2022, Mangosteen Inc. issued a new 10-year mortgage note and paid P 250,000 in cash on the principal balance and refinanced the remaining P 950,000. • Included in the accounts receivable balance at December 31, 2021 were two customers' accounts that had been overpaid and has a credit balances totaling P 18,000. The accounts were of two major customers who were expected to order more merchandise from Mangosteen Inc. and apply the overpayment to those future purchases. • On November 1, 2021, Mangosteen Inc. rented out a portion of its factory to a tenant for P 30,000 per year, payable in advance. The payment for 12 months ended in October 31, 2022 as received and was credited to rent revenue. How much is the total current liabilities of Mangosteen Inc. as of December 31, 2021? A. P1,903,000 D. P 935,000 B. P1,835,000 C. P 953,000

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

100%

The unadjusted trial balance of Mangosteen Inc. at December 31, 2021, the end of its
accounting period, included among others, the following balances. Mangosteen Inc.'s
2021 financial statements were issued on April 1, 2022.
Accounts receiable.
Accounts payable...
Bank notes payable..
Mortgage note payable..
P
92,500
35,000
600,000
1,200,000
Other information:
• The bank notes issued on August 1, 2021 are due on July 31, 2022 and pay
interest at a rate of 10% payable at maturity.
The mortgage note is due on March 1, 2022. Interest at 9% has been paid up
to December 31.(assume 9% is a realistic rate). On March 1, 2022,
Mangosteen Inc. issued a new 10-year mortgage note and paid P 250,000 in
cash on the principal balance and refinanced the remaining P 950,000.
• Included in the accounts receivable balance at December 31, 2021 were two
customers' accounts that had been overpaid and has a credit balances totaling
P 18,000. The accounts were of two major customers who were expected to
order more merchandise from Mangosteen Inc. and apply the overpayment to
those future purchases.
• On November 1, 2021, Mangosteen Inc. rented out a portion of its factory to a
tenant for P 30,000 per year, payable in advance. The payment for 12 months
ended in October 31, 2022 as received and was credited to rent revenue.
How much is the total current liabilities of Mangosteen Inc. as of December 31, 2021?
А. Р 1,903,000
В. Р 1,835,000
C. P 953,000
D. P 935,000

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