An entity records on December 31, 20x1 show the following account balances: Trade accounts payable (net of P10,000 debit balance in 600,000 Supplier’s account and P8,000 unreleased checks drawn) Deferred tax liability (expected to reverse in 20x2) 10,000 10%,4-year note payable issued on August 1,20x1 240,000 Bonds Payable (maturing in 5 equal annual installments of P400,000)2,000,000 Reserve for contingencies 50,000 Held for trading financial liabilities 100,000 Income tax payable 100,00

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 50P
icon
Related questions
Question

An entity records on December 31, 20x1 show the following  account balances:

Trade accounts payable (net of P10,000 debit balance in  600,000

Supplier’s account and P8,000 unreleased checks drawn)

Deferred tax liability (expected to reverse in 20x2)     10,000

10%,4-year note payable issued on August 1,20x1   240,000

Bonds Payable (maturing in 5 equal annual installments of P400,000)2,000,000

Reserve for contingencies     50,000

Held for trading financial liabilities  100,000

Income tax payable  100,000

Accrued expenses    10,000

Stock dividends payable   24,000

 

How much is the total current liabilities?


a. 1,120,000 b. 1,210,000 c. 1,220,000 d. 1,238,000

Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Computation of Taxable Income
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.
Similar questions
Recommended textbooks for you
SWFT Comprehensive Volume 2019
SWFT Comprehensive Volume 2019
Accounting
ISBN:
9780357233306
Author:
Maloney
Publisher:
Cengage
SWFT Comprehensive Vol 2020
SWFT Comprehensive Vol 2020
Accounting
ISBN:
9780357391723
Author:
Maloney
Publisher:
Cengage
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L