Reference no: EM132578247

Following selected account balances and supplemental information were taken from the accounting records of Coolidge Company as of December 31, 2015:

Sales P 9,675,000

Mortgage Note Payable 1,300,000

Bank Notes Payable 300,000

Accounts payable 270,000

Stock Dividends Payable 200,000

Withholding Tax Payable 120,000

SSS Premium Payable 45,000

Philhealth Premiums Payable 22,000

Pag-ibig Contributions Payable 18,000

Supplemental information:

a. Mortgage note was refinanced on its due date, February 15, 2016 with a new 5-year mortgage note after paying P300, 000 cash on the principal balance. The refinancing scheme was planned long before its due date. There was no unpaid interest as of December 31, 2015.

b. The bank notes are payable in semi-annual installments of P50, 000 on February 1 and August 1 of each year. Unpaid interest as of December 31, 2015 of P7, 500 has not been taken up. This was paid on January 5, 2016.

c. On August 1, 2015, a suit was filed by a dismissed employee against the company asking for P1, 000,000 damages. The company's lawyer believes it is probable that the suit will result in a loss to the company, ranging from P600, 000 to P900, 000, with each point in the range, considered to be equally likely.

d. The sales account included the 12% VAT corresponding to the last quarter sales of P2, 688, 000 (inclusive of VAT). This was remitted to the BIR on January 20, 2016.

e. The entity's share of the SSS, Philhealth and Pag-ibig are as follows:

SSS P50, 000

Philhealth 28, 000

Pag-ibig 20, 000

f. Total income tax due for 2015 amounted to P865, 000. Quarterly remittances to BIR during the year for income tax totaled to P550, 000. The balance due as of December 31, 2015 has not been taken up in the books.

REQUIRED:

Question 1: Compute the total current liabilities presented on the December 31, 2015 statement of financial position.