Activity
1. Patience Co’s liabilities as of December 31,2021 include the ff.
Accounts Payable
P500,000
Held for trading financial liabilities
1,000,000
Note Payable (1M due in 2023)
2,800,000
Unearned Revenue
300,000
Dividend Payable
800,000
Deferred tax liability
200,000
Compute for the total current liabilities
2. Turmeric Co’s liabilities as of December 31,2021 (current year end) include the ff:
- P10,000,000 , 8 year loan maturing on December 31,202 Turmeric intends to refinance this
liability on long term basis on February 2,2022. Turmeric’s 2021 financial statement were
authorize for issue on March 31,2022
- P6,000,000 loan that is payable on demand. There is no indication as of December 31,2021
that the creditor will demand repayment within the next 12 months.
- P14,000,000 loan due on December 31,2029. Turmeric Co breached a loan provision
accelerating the repayment of this loan within the next 12 months. However, on January
12,2022 the creditor granted Turmeric Co a 12-month grace period to rectify the breach,
within which the creditor will not demand immediate repayment.
Compute for the total current liabilities as of December 31,2021
3. During the year, Fince Ground Co. sold gift certificates worth P400,000 , of which P216,000 were
redeemed. Fince Ground Co has sold gift cards for many years and , based on its historical data,
10% of the gift cards sold are never redeemed.
Provide the journal entries using PFRS 15
4. NV Co. has total current liabilities of P5,840,000 as of December 31,2021 before considering the
ff:
- December 2021 utilities of P50,000 were paid on Jan 7, 2022
- Cash dividends of P290,000 were declared and paid in January 2022. NV Co. 2021 financial
statements were authorized for issue on February 14,2022
- Employee withholding taxes in 2021 were understated by P20,000
Compute for the correct balance of current liabilities
5. On December 31,2020, Baikal Company acquired a piece of equipment from Seller Company
by issuing a P1,200,000 note, payable in full December 31,2024 . Baikal credit rating permits it
to borrow funds from its several lines of credit at 10%. The equipment is expected to have a 5
year life and P150,000 salvage value.
How much would be the equipment on December 31,2022
What is the carrying value of the note as of December 31,2022?