Reference no: EM133048109

Question 1 - ABC Company has the following liabilities as of December 31, 2018

a. Trade accounts payable, net of debit balance in supplier's account of P5,000, net of unreleased 100,000 checks of P4,000, and net of postdated checks of P2,000.

b. Credit balance in customers' accounts 2,000

c. Financial liability 50,000.

d. Bonds payable (maturing in 10 equal annual installments of P100,000) 1,000,000

e. 12%, 5-year note payable issued on October 1, 2018 100,000

f. Deferred tax liability 5,000

g. Unearned rent 4,000

h. Contingent liability 10,000

i. Reserve for contingencies 25,000

Requirement - How much is the total current liabilities?

Question 2 - XYZ Co. has the following liabilities as of December 31, 2018.

a. Trade accounts payable, including cost of goods P300,000 received on consignment of P10,000.

b. Held for trading financial liabilities 50,000

c. Deferred revenue 20,000

d. Bank overdraft 10,000

e. Income tax payable 50,000

f. Accrued expenses 5,000

g. Share dividend payable 12,000

h. Advances from affiliates payable in 15 months 23,000 after year-end.

i. Loan of XYZ, Inc. guaranteed by ABC - it is possible 45,000

ABC will be held liable for the guarantee.

Requirement - Compute for the adjusted accounts payable accounts payable on December 31, 2018.

Question 3 - On December 31, 2018, MSU Co. has accounts payable of P 1 000 000 before possible adjustment for the following:

a. Goods in transit from a vendor to ABC on December 31, 2018 with an invoice cost of P50 000 purchased FOB shipping point was not yet recorded.

b. Goods shipped FOB shipping point from a vendor to ABC, was lost in transit. The invoice cost of P20 000 was not yet recorded.

c. Goods shipped FOB shipping point from a vendor to ABC on December 31, 2018 amounting to P8 000 was recorded and included in the year-end physical count as "goods in transit".

d. Goods in transit from a vendor to ABC on December 31, 2018 with an invoice cost of P10 000 purchased FOB destination was not yet recorded. The goods were received in January 2019.

e. Goods with invoice cost of P15 000 was recorded and included in the year-end physical count as "goods in transit". It was found out that the goods were shipped from a vendor under FOB destination.

Requirement - Compute for the adjusted accounts payable accounts payable on December 31, 2018.

Question 4 - On December 31, 2018, KLM Co. has accounts payable of P1 000 000 before possible adjustment for the following:

a. Checks drawn but not yet released to payees amounted to P12 000 while checks drawn and released to payees but were postdated amounted to P5 000.

b. On December 28, 2018, a vendor authorized ABC to return for full credit goods shipped and billed at P25 000 on Dec. 14, 2018. ABC shipped the on December 31, 2018 but the credit memo received and recorded only on January 3, 2019.

c. Goods shipped FOB shipping point, freight prepaid from a vendor on December 28, 2018 was recorded at invoice cost at shipment date. The invoice cost is P14 000 while the freight cost is P3 000.

d. Goods shipped FOB destination, freight collect were received on December 29, 2018. The invoice cost of P40 000 was credited to accounts payable on date of receipt and the related freight of P5 000 was debited to an expense account.

Requirement - Compute for the adjusted accounts payable on December 31, 2018.