What amount should be reported as current liabilities? What amount should be reported as noncurrent liabilities? What amount should be disclosed as contingent liabilities?
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
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
