Accountable events must meet three criteria for recognition.The following selected business documents of Perfidia Corporation are presented to you by its management in 2020 for your analysis:

(1)An advertising bill for December 2020 P 60,000 remains unpaid as of year-end.

(2)A 60-day promissory note for P 250,000 issued on December 15 for the purchase of an

equipment.

(3)A purchase order for P 50,000 worth of manufacturing supplies.

(4)A purchase commitment costing P 2,000,000 entered into by Perfidia Corporation for

delivery of merchandise on April 21, 2021. Advance payment of 50% was made by

Perfidia Corporation

(5) A contract of employment signed by Perfidia Corporation and a newly hired Marketing

manager on December 29, 2020,stating an agreed salary of P1,000,000starting January 1,

2021.

(6)An official receipt amounting to P500,000 issued to a lessee for an advance rental payment on

a one-year contract of lease for the succeeding year 2021

Question 1.What should be the total monetary amount that should be recognized in the books of

Perfidia Corporation as accountable events?

Jay Company had the following activities during for 2020:

(1) Jorden invests P 5 M in Jay Company, expecting to earn profit on his investment as stockholder

(2)Jay Company signs a letter of intent to purchase goods worth P 500,000 from Shift Corporation.

The goods will be delivered in three months

(3) Carissa Enterprise pays Jay Company P 300,000 in advance for goods to be delivered at the end

of the first quarter of 2021.

(4) Jay Company's lawyers estimate that it is probable that Jay Company will have to pay damages

on account of a patent infringement suit although the amount cannot yet be ascertained.

(5)Jay Company estimates a provision for product guaranty in the amount of P250,000 in case

some customers will claim free repairs on damages on products that it sold during the year.

(6)Unpaid salaries of Jay Company at the end of the year is P 75,000

(7)Cash dividends declared by Jay as of December 28, 2020 payable on February 28 2021

amounted to P 320,000

Question 2. How much is the total liabilities that Jay should recognize in the financial statements

of December 31, 2020?