Additional Iitl: 1. Trade pm'ubl'es. Accounts payable for supplies. goods. and services purchased on open account amount to P325.000 as of March 31. 20x3. 2- Pai'TON-relared items. The lollowing outstanding, obligations relate to Cute People's payroll as of March 3|. zcxs. Accrued salaries and wages P 145.000 Income taxes withheld from employees 45.000 Other payroll deductions 3.000 3. Taxes. The following taxes are inCurred but not due until the next scal year: Income taxes P2501100 Property taxes 100,000 Value-added taxes 105,000 4. Miscellaneous accruals. Other accruals not separately classified amount to P50.000 as of March 3 l , 20x1 5. Dividends. On March l5, 20x3, the company's board of directors declared a cash dividend of P0.40 per common share and a 10% ordinary share dividend. Both dividends were to be distributed on April 12. 20x1 to the ordinary shareholders of record at the close of business on March 3 l , 20x3. Data regarding Cute People's ordinary shares are as follows: Par value P5 par share Number ol shares issued and outstanding 2,500,000 shares Market value of ordinary shares - Mar. 15, 20x3 P2200 per share Mar. 31. 20x3 P2150 per share Apr. 12, 20x3 P2250 per share Required: a. Prepare the current liability section of the statement of nancial position for Rose People, Inc., as of March 31. 20x3, as it should appear in the annual report to shareholders. b. If you have excluded any items from the presentation of current liabilities, explain why you have done so. (CM?! adapted) Problem 3: Audit of Liabilities: Current and Non-current Rose People, Inc., has produced quality children's apparel for over 25 years. The company's fiscal year is from April 1 to March 31. The following information relates to the obligations of Rose People as of March 31. 20X3: Bonds Payable. The company issued P4,000,000 of 7% bonds on July 1, 20X3, at 98, which yielded proceeds of P3,920,000. The bonds will mature on July 1, 20X7. Interest is paid semi-annually on July 1 and January 1. Rose People uses the straight-line method to amortize the bond discount. Notes Payable. Rose People has signed several long-term notes with financial institutions and insurance companies. The maturities of these notes are given below. The total unpaid interest for all of these notes amounts to P90,000 on March 31, 20X3. Due Date Amount Due Apr. 1, 20X3 P100,000 July 1, 20X3 200,000 Oct. 1, 20X3 100,000 Jan. 1, 20X4 200,000 Apr. 1, 20X4 - Mar. 31, 20X5 600,000 Apr. 1. 20X5 - Mar. 31, 20X6 400,000 Apr. 1, 20X6 - Mar. 31, 20X7 400,000 Apr. 1, 20X7 - Mar. 31, 20X8 500,000 Apr. 1, 20X9 - Mar. 31, 20X9 500,000 P3.000.000 Estimated Warranties. Rose People has a one-year product warranty on selected items. The estimated warranty liability on sales made during the 20X 1-20X2 fiscal year and still outstanding as of March 31, 20X2, amounted to P55,000. The warranty costs on sales made from April 1, 20X2, through March 31, 20X3. are estimated at P145,000. The actual warranty costs incurred during the current 20X2-20X3 fiscal year are as follows: Warranty claims honored on 20X1-20X2 sales P 55,000 Warranty claims honored on 20X2-20X3 sales 75,000 P130,000