The following information about Manchester Company is available on December 31, 2021. Income taxes withheld from employees P900,000 Cash balance at First State Bank – Account 101 2,500,000 Accounts receivable with credit balance 750,000 Cash overdraft at Second State Bank 1,310,000 Estimated expenses of meeting warranties on merchandise previously sold 500,000 Estimated damages as a result of unsatisfactory performance on a contract 1,500,000 Cash overdraft at Third State Bank – Account 102 10,000 Accounts payable 3,000,000Deferred serial bonds, issued at par and bearing interest at 12%, payable in semi-annual installment of P500,000 due April 1and October 1 of each year , the last bond to be paid October 1, 2026. Interest will be paid fully on maturity of the note. 5,000,000Stock dividends payable 2,000,000 Compute the total current liabilities on December 31, 2021
The following information about Manchester Company is available on December 31, 2021. Income taxes withheld from employees P900,000 Cash balance at First State Bank – Account 101 2,500,000 Accounts receivable with credit balance 750,000 Cash overdraft at Second State Bank 1,310,000 Estimated expenses of meeting warranties on merchandise previously sold 500,000 Estimated damages as a result of unsatisfactory performance on a contract 1,500,000 Cash overdraft at Third State Bank – Account 102 10,000 Accounts payable 3,000,000Deferred serial bonds, issued at par and bearing interest at 12%, payable in semi-annual installment of P500,000 due April 1and October 1 of each year , the last bond to be paid October 1, 2026. Interest will be paid fully on maturity of the note. 5,000,000Stock dividends payable 2,000,000 Compute the total current liabilities on December 31, 2021
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information about Manchester Company is available on December 31, 2021. Income taxes withheld from employees P900,000 Cash balance at First State Bank – Account 101 2,500,000 Accounts receivable with credit balance 750,000 Cash overdraft at Second State Bank 1,310,000 Estimated expenses of meeting warranties on merchandise previously sold 500,000 Estimated damages as a result of unsatisfactory performance on a contract 1,500,000 Cash overdraft at Third State Bank – Account 102 10,000 Accounts payable 3,000,000Deferred serial bonds, issued at par and bearing interest at 12%, payable in semi-annual installment of P500,000 due April 1and October 1 of each year , the last bond to be paid October 1, 2026. Interest will be paid fully on maturity of the note. 5,000,000Stock dividends payable 2,000,000 Compute the total current liabilities on December 31, 2021
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