Reference no: EM133075326

Questions -

Q1. Company reported the following account balances on December 31, 2021:

Accounts payable- P1,900,000

Bonds payable - P3,400,000· Premium on bonds payable- P200,000

Deferred tax liability- P400,000· Dividend payable- P500,000

Income tax payable- P900,000· Note payable due January 31, 2022- P600,000

On December 31, 2021, what total amount should be reported as current liabilities?

Q2. The following are the changes in the accounts of EXA Co. during the period:

Accounts receivable- P240,000 increase

Prepaid assets- P600,000 increase

Inventory- P1,500,000 decrease

Notes payable- P800,000 decrease

Additional information: During the year, EXA Co. obtained a bank loan of P2,000,000 and paid interest of P100,000. Interest of P80,000 is accrued on December 31, 2021. Interest payable at the end of 2020 amounted to P120,000. In 2021, a shareholder donated an equipment with historical cost of P1,000,000 and carrying amount of P800,000 to EXA Co. The fair value of the equipment is P600,000. EXA declared dividends in 2021 of P160,000. How much is the profit (loss) for the year?