Cash of P14,000 has been set aside to pay taxes due. The cash and taxes payable have been offset and do not appear in the financial statements.
The following totals are taken from the
| Current Assets | 350,000 |
| Long-term Assets | 800,000 |
| Current Liabilities | 240,000 |
| Long-term Liabilities | 270,000 |
Additional information:
a. Cash of P38,000 has been placed in a fund for the retirement of long-term debt. The cash and long-term debt have been offset and are not reflected in the financial statements.
b. Long-term assets include P50,000 in treasury shares.
c. Cash of P14,000 has been set aside to pay taxes due. The cash and taxes payable have been offset and do not appear in the financial statements.
d. Advances on salespersons' commissions in the amount of P21;000 have been made. Also, sales commissions payable total P24,000. The net liability of P3,000 is included in Current Liabilities.
1. Adjusted total current liabilities
a. P240,000
b. P254,000
c. P275,000
d. P278,000
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