Reference no: EM132708727

Questions -

1. Included in M Corporation's liability account balances at December 31, 20x6 was a Note payable for 2,800,000. The principal amount of the note payable is $2,800,000 and bears interest at 15%. The note is dated April 1, 20x6 and is payable in four equal installments of $700,000 beginning April 1, 20x7. The first principal and interest payment was made on April 1, 20x7. Determine the non-current portion of the note payable as of December 31, 20x7.

2. Sonia Company reported gross payroll of $600,000 for the month of January. The entity paid the payroll net of the following deductions: Income tax - 70,000, SSS - 15,000, Philhealth - 8,000, Pagibig - 7,000, Total = 100,000. In addition, the entity recognized its additional contributions for the following in relation to January payroll: SSS - 20,000, Philhealth - 9,000, Pagibig - 6,000, Total = 35,000. What amount should be reported as total payroll tax liability?

3. On March 31, 20x7, GRIZ issued for $1,774,000, $2,000,000 face amount of its 10%, $1,000 bonds. The bonds were issued to yield 12%. The bonds are dated July 1, 20x7 and mature on July 1, 20x10. Interest is payable annually on July 1. GRIZ uses the interest method to amortize bond discount. Determine the interest expense of the Bonds on December 31, 20x8.