7 - CURRENT LIABILITY The December 31 trial balance of the Ruel Corporation includes, among others, the following: Long-term Notes - which are payable in annual installment of P10,000 on February 1 of each year Rental income received in advance Notes payable, which are trade notes, with the exception of P20,000 Notes payable to bank on June 30 of the following year Accounts payable which include account with debit balance of P2,000 Notes Receivable which have been reduced by notes discounted of P20,000 that are not yet due and on which the Corporation is contingently liable Accounts Receivable, which include accounts with credit balances of P10,000 and past due accounts of P6,000 on which a loss of 80% is anticipated Merchandise Inventory, which includes goods held for consignment, P8,000, and goods received on December 31 of P12,000; neither of these items having been recorded as a purchase Questions 1. What is the amount of the current liabilities on December 31? a. P 190,000 b. P 184,000 c. P 178,000 P 60,000 16,000 60,000 80,000 100,000 200,000 180,000 d. P 170,000 2. The long-term debt at year-end is a. P 70,000 b. P 50,000 c. P 30,000 d. PO 7