1. Compute for the current liability to be presented in the financial position a. P12 million b. P10 million c. P5 million d. P4 million Answer: 2. Compute for the noncurrent liability to be presented in the statement of financial positon a. Zero b. P2 million c. P7 million d. P9 million Answer:
1. Compute for the current liability to be presented in the financial position a. P12 million b. P10 million c. P5 million d. P4 million Answer: 2. Compute for the noncurrent liability to be presented in the statement of financial positon a. Zero b. P2 million c. P7 million d. P9 million Answer:
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 50P
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Question
Tyeso Company entered into a lawsuit on December 25, 2020 and recognized on the same date a provision of P2,000,000. On February 28, 2021, when the financial statements for the year ended December 31, 2020 had not yet been authorized for issue, the case was settled and the court decided the final total damages to paid by the entity at P3,000,000.
In addition, the Company has a loan payable of P2,000,000 due on June 30, 2021. On January 1, 2021, before the authorization of the issuance of financial statements, the bank agreed to refinance the loan, extending the maturity to June 30, 2023.
Also, another loan amounting to P7,000,000 due on December 1, 2021 was obtained by the Company from BDO. TYESO Company has the discretion to refinance or roll over the loan for at least twelve months from December 31, 2021.
1. Compute for the current liability to be presented in the financial position
a. P12 million b. P10 million c. P5 million d. P4 million
Answer:
2. Compute for the noncurrent liability to be presented in the statement of financial positon
a. Zero b. P2 million c. P7 million d. P9 million
Answer:
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