Homework Help is Here – Start Your Trial Now!
Business
Accounting
revenue yable-bank yable (b) nclude two se 0% poto iccus

revenue yable-bank yable (b) nclude two se 0% poto iccus

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please answer

Canton Cave Company provided the following schedule of liabilities on December 31, 2014: P6,500,000 Accounts payable Unearned revenue 5,000,000 8,000,000 Notes payable - bank (a) Bonds payable (b) 4,000,000 Additional 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 months. • 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-annuall on June 30 and December 31. C. There is a pending litigation against Canton Cave Company because for copyright issues. The legal counsel estimates that the company would have to pay P4,000,000 in damages expected to be settled 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 the actual warranty expenditures is 70,000. The company recorded actual warranty expenditures directl as warranty expense. Present a partial statement of financial position, showing the current liabilities and noncurrent liabilities and the total liabilities. Follow the format below. ( Format: <Name of Company> Statement of Financial Position As of <date> Liabilities Current liabilities XX XX <amount> Noncurrent liabilities XX XX <amount> TOTAL LIABILITIES <AMOUNT> Total current liabilities Total noncurrent liabilities <amount> <amount> <amount> <amount>
Transcribed Image Text:Canton Cave Company provided the following schedule of liabilities on December 31, 2014: P6,500,000 Accounts payable Unearned revenue 5,000,000 8,000,000 Notes payable - bank (a) Bonds payable (b) 4,000,000 Additional 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 months. • 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-annuall on June 30 and December 31. C. There is a pending litigation against Canton Cave Company because for copyright issues. The legal counsel estimates that the company would have to pay P4,000,000 in damages expected to be settled 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 the actual warranty expenditures is 70,000. The company recorded actual warranty expenditures directl as warranty expense. Present a partial statement of financial position, showing the current liabilities and noncurrent liabilities and the total liabilities. Follow the format below. ( Format: <Name of Company> Statement of Financial Position As of <date> Liabilities Current liabilities XX XX <amount> Noncurrent liabilities XX XX <amount> TOTAL LIABILITIES <AMOUNT> Total current liabilities Total noncurrent liabilities <amount> <amount> <amount> <amount>
Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Market Efficiency
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS