The following accounts are excerpt trial balance of Strawberry Corp. at December 31, 2021 has been properly adjusted except for the income tax expense adjustment. • Cash- P775,000 • Accounts receivable (net)- P2,695,000 • Inventory- P2,085,000 • Property, plant, and equipment (net)- P7,366,000 • Accounts payable and accrued liabilities- P1,701,000 • Income taxes payable- P654,000 • Deferred tax liability- P85,000 • Ordinary share capital- P2,350,000 • Additional paid-in capital- P3,680,000 • Retained earnings, 1/1/21- P3,450,000 • Net sales and other revenues- P13,360,000 • Costs and expenses- P11,180,000 • Income tax expenses- P1,179,000 Other financial data for the year ended December 31, 2021: • Included in accounts receivable is P1,200,000 due from a customer and payable in quarterly installments of P150,000. The last payment is due December 29, 2023. • The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which P20,000 is classified as a current liability. • During the year, estimated tax payments of P525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%. How much is the total current assets as of December 31, 2021? a) P5,405,000 b) P4,955,000-answer c) P5,555,000 d) P6,080,000 57. Using the data in no. 56, how much is the total current liabilities as of December 31, 2021? a) P2,440,000 b) P1,915,000 c) P1,850,000-answer d) P2,375,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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56. The following accounts are excerpt trial balance of Strawberry Corp. at December 31, 2021 has been
properly adjusted except for the income tax expense adjustment.
• Cash- P775,000
Accounts receivable (net)- P2,695,000
• Inventory- P2,085,000
• Property, plant, and equipment (net)- P7,366,000
• Accounts payable and accrued liabilities- P1,701,000
• Income taxes payable- P654,000
Deferred tax liability- P85,000
• Ordinary share capital- P2,350,000
• Additional paid-in capital- P3,680,000
Retained earnings, 1/1/21- P3,450,000
• Net sales and other revenues- P13,360,000
• Costs and expenses- P11,180,000
• Income tax expenses- P1,179,000
Other financial data for the year ended December 31, 2021:
• Included in accounts receivable is P1,200,000 due from a customer and payable in quarterly
installments of P150,000. The last payment is due December 29, 2023.
• The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose
in a prior year, of which P20,000 is classified as a current liability.
• During the year, estimated tax payments of P525,000 were charged to income tax expense. The
current and future tax rate on all types of income is 30%.
How much is the total current assets as of December 31, 2021?
a) P5,405,000
b) P4,955,000-answer
c) P5,555,000
d) P6,080,000
57. Using the data in no. 56, how much is the total current liabilities as of December 31, 2021?
a) P2,440,000
b) P1,915,000
c) P1,850,000-answer
d) P2,375,000

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