Following selected account balances and supplemental information were taken from the accounting records of Nande Corporation as of December 31, 2017:

Sales 9,675,000 Mortgage note payable 1,300,000 Bank notes payable 300,000 Accounts payable* 270,000 Share dividends payable 200,000 Withholding tax payable 120,000

*Solely arising from purchase of merchandise

Supplemental information: A. Mortgage note payable was refinanced on its due date, February 15, 2018 with a new 5-year mortgage note after paying 300,000 cash on the principal balance. There was no unpaid interest as of December 31, 2017. B. The bank notes payable are payable in semi-annual installments of 50,000 on February 1 and August 1 of each year. Unpaid interest for 2017 of P 7,500 has not been taken up. This was paid on January 5, 2018. C. The sales account included the 12% Value-Added Tax (VAT) corresponding to the sales for the month of December of 2,688,000 (inclusive of VAT). This was remitted to the BIR on January 20, 2018. D. Total income tax due for 2017 amounted to 186,500. Quarterly remittances to BIR during the year for income tax totaled 105,000, including payment of P 35,000 on income tax relating to the prior year. The balance due as of December 31, 2017 has not been taken up in the books.

QUESTIONS

1. How much is the total current liabilities as at December 31, 2017? A. 2,402,900

B. 2,202,000

C. 1,202,000

D. 902,500

2. How much is the total non-current liabilities as at December 31, 2017? A. 1,500,400

B. 1,200,090

C. 200,000

D. 350,000

CORRECT ANSWERS

1. B. 2,202,000

2. C. 200,000

SHOW SOLUTION AND EXPLANATION.