Ray Company had the following liabilities on December 31, 2021: · Trade accounts payable, net of debit balances totaling P65,000 in suppliers’ accounts- P1,125,000 · Accrued expenses- P136,000 · Interest payable- P96,000 · Income tax payable- P150,000 · Mortgage payable due in equal annual installments until Oct 31, 2026- P750,000 · Share dividends declared but not yet issued- P300,000 · Claims for the unclaimed wages by employees of the company covered in a pending lawsuit (not considered to be probable)- P250,000 How much is the total current liabilities of Ray Company to be shown on its December 31, 2021 statement of financial position? CHOICES: P2,207,000 P1,722,000 P1,272,000 P2,022,000
Ray Company had the following liabilities on December 31, 2021: · Trade accounts payable, net of debit balances totaling P65,000 in suppliers’ accounts- P1,125,000 · Accrued expenses- P136,000 · Interest payable- P96,000 · Income tax payable- P150,000 · Mortgage payable due in equal annual installments until Oct 31, 2026- P750,000 · Share dividends declared but not yet issued- P300,000 · Claims for the unclaimed wages by employees of the company covered in a pending lawsuit (not considered to be probable)- P250,000 How much is the total current liabilities of Ray Company to be shown on its December 31, 2021 statement of financial position? CHOICES: P2,207,000 P1,722,000 P1,272,000 P2,022,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
47. Ray Company had the following liabilities on December 31, 2021:
· Trade accounts payable, net of debit balances totaling P65,000 in suppliers’ accounts- P1,125,000
· Accrued expenses- P136,000
· Interest payable- P96,000
· Income tax payable- P150,000
· Mortgage payable due in equal annual installments until Oct 31, 2026- P750,000
· Share dividends declared but not yet issued- P300,000
· Claims for the unclaimed wages by employees of the company covered in a pending lawsuit (not considered to be probable)- P250,000
How much is the total current liabilities of Ray Company to be shown on its December 31, 2021 statement of financial position?
· Trade accounts payable, net of debit balances totaling P65,000 in suppliers’ accounts- P1,125,000
· Accrued expenses- P136,000
· Interest payable- P96,000
· Income tax payable- P150,000
· Mortgage payable due in equal annual installments until Oct 31, 2026- P750,000
· Share dividends declared but not yet issued- P300,000
· Claims for the unclaimed wages by employees of the company covered in a pending lawsuit (not considered to be probable)- P250,000
How much is the total current liabilities of Ray Company to be shown on its December 31, 2021 statement of financial position?
CHOICES:
P2,207,000
P1,722,000
P1,272,000
P2,022,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education