What is the correct answer and show the solution. An entity records on December 31, 20x1 show thefollowing account balances:Trade accounts payable (net of P10,000 debitbalance in600,000Supplier's account and P8,000 unreleasedchecks drawn)Deferred tax liability (expected to reverse20x2)10,00010%,4-year note payable issued on August1,20x1240,000Bonds Payable (maturing in 5 equal annualinstallments of P400,000)2,000,000Reserve forcontingencies50,000Held for trading financialliabilities100,000Income taxpayable100,000Accruedexpenses10,000Stock dividendspayable24,000How much is the total current liabilities?A) 1,220,000B) 1,120,0001,238,000D1,210,000

In accounting, current liabilities are generally understood to be due to the liabilities of the…

Answered: How much is the total current…

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How much is the total current liabilities? A 1,220,000 B 1,120,000 C 1,238,000 (D) 1,210,000

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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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
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