Reference no: EM132869578

Shown below are selected accounts and their balances for the Zay Company as of December 31, 2018:

Accounts payable - P980,000;

Accounts receivable - P2,160,000;

Allowance for bad debts - P250,000;

Cash - P224,000;

Wages payable - P108,000;

Trademarks - P450,000;

Long-term advances to officers - P1,500,000;

Inventory - P830,000;

Income taxes payable - P720,000;

Notes receivable (short-term) - P970,000;

Bond redemption fund - P1,800,000;

Bonds payable - P5,000,000;

Premium on bonds payable - P400,000;

Treasury shares - P576,000

Problem 1: How much were the total current assets at December 31, 2018?

a. P3,934,000

b. P3,943,000

c. P5,434,000

d. P4,510,000

Problem 2: How much were the total current liabilities at December 31, 2018?

a. P980,000

b. P1,088,000

c. P1,808,000

d. P7,208,000