Reference no: EM133107202
Question - Below are information from the books of Bicol Company as of September 30, 2020:
Notes payable (due on December 31, 2020) P3,500
Accounts payable arising from purchase of goods 112,500
Dividends in arrears on preference shares, not yet declared 25,000
Share dividends payable 20,000
Income tax payable 13,400
Accrued liabilities 4,200
Mortgage payable 225,000
Customers' deposits 8,900
Reserve for contingencies 25,000
After careful analysis of the supporting documents, the audit team discovered the following:
Additional expenses worth P5,000 has not been recorded. These expenses has not been paid.
Customer deposits worth P1,300 were availed but not recorded in the books
Payment of the payables were recorded as additional purchases. Total of this was P14,000.
1. How much is the total current liabilities?
2. Provide the journal entry to adjust the entries with the audit results.