What amount should be reported as current liabilities? What amount should be reported as noncurrent liabilities? What amount should be disclosed as contingent liabilities?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Use the information for the next three (3) questions. On December 31, 2020, Ross Company provided the following information:

Accounts payable, including deposits and advances from

 

customer of P250,000 and after deducting debit balances in

 

supplier's accounts of P100,000

1,250,000

Notes payable, including note payable to bank due on

 

December 31, 2022 of P500,000

1,500,000

Share dividend payable

400,000

Credit balances in customers' accounts

200,000

Serial bonds payable in semiannual installment of P500,000

5,000,000

Accrued interest on bonds payable

150,000

Contested BIR tax assessment - possible obligation

300,000

Unearned rent income

100,000

Bank overdraft

300,000

Withholding tax payable

100,000

Mortgage payable

3,800,000

Estimated warranty liability

600,000

Estimated damages payable by reason of breach of contract

700,000

Estimated premium liability

200,000

Claim for increase in wages by employees covered in a

 

pending lawsuit

3,500,000

Contract entered into for the construction of building,

 

P2,000,000 already billed by the contractor

 

but not yet paid by Ross

5,000,000

Bonds payable due December 31, 2022

2,000,000

 

 


What amount should be reported as current liabilities?

What amount should be reported as noncurrent liabilities?

What amount should be disclosed as contingent liabilities?

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