Problem 2-15 (AICPA Adapted) Brite Company provided the following data on December 31, 2021: Accounts payable Note payable, 8% unsecured, due July 1, 2023 Accrued expenses Contingent liability Deferred tax liability Bonds payable, 7%, due December 31, 2022 Premium on bonds payable 550,000 4,000,000 350,000 450,000 250,000 5,000,000 500,000 The contingent liability is an accrual for possible loss on a P1,000,000 lawsuit filed against the entity. The deferred tax liability is not related to an asset for financial reporting and is expected to reverse in 2022. When total amount should be reported as current liabilities on December 31, 2021? a. 4,900,000 b. 5,350,000 c. 6,400,000 d. 6,850,000
Problem 2-15 (AICPA Adapted) Brite Company provided the following data on December 31, 2021: Accounts payable Note payable, 8% unsecured, due July 1, 2023 Accrued expenses Contingent liability Deferred tax liability Bonds payable, 7%, due December 31, 2022 Premium on bonds payable 550,000 4,000,000 350,000 450,000 250,000 5,000,000 500,000 The contingent liability is an accrual for possible loss on a P1,000,000 lawsuit filed against the entity. The deferred tax liability is not related to an asset for financial reporting and is expected to reverse in 2022. When total amount should be reported as current liabilities on December 31, 2021? a. 4,900,000 b. 5,350,000 c. 6,400,000 d. 6,850,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 2-15 (AICPA Adapted)
Brite Company provided the following data on December
31, 2021:
550,000
4,000,000
350,000
450,000
250,000
5,000,000
The contingent liability is an accrual for possible loss on a
Accounts payable
Note payable, 8% unsecured, due July 1, 2023
Accrued expenses
Contingent liability
Deferred tax liability
Bonds payable, 7%, due December 31, 2022
Premium on bonds payable
nces
900,00
400,0
200,00
400,00
500,00
900,00
600,00
500,000
P1,000,000 lawsuit filed against the entity.
The deferred tax liability is not related to an asset for
financial reporting and is expected to reverse in 2022.
When total amount should be reported as current liabilities
on December 31, 2021?
portesl
a. 4,900,000
b. 5,350,000
c. 6,400,000
d. 6,850,000
63
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