Reference no: EM133068878
Question - BTS Corporation had the following unadjusted balances on specific accounts for the year ended December 31, 2020:
Accounts Payable, net of debit balances of P50,000 - P150,000
Accounts Receivable, net of credit balances of P25,000 - P250,000
Bonds Payable - P453,000
Cash Dividends Payable - P125,000
Stocks Dividend Payable - P156,000
Unearned Subscription Revenue - P654,00
Of the Unearned Subscription Revenue balance, 30% were earned during 2020.
Bonds Payable is due on July 31, 2025. However, a breach of contract related to the bonds occurred on December 18, 2020 and the payable becomes due on demand. On December 28, 2020, Tiffany and the lender reached a compromise and agreed that the payable will be due on July 31, 2023 instead of the original maturity date.
Determine the current liability to be reported on December 31, 2020.