Question
In the audit of Atlanta Corporations financial statements on December 31, 2025, the chief accountant of the staid corporation provided the following information: Notes payable:
In the audit of Atlanta Corporation’s financial statements on December 31, 2025, the chief accountant of the staid corporation provided the following information:
Notes payable: | |
Arising from the purchase of goods | 304,000 |
Arising from 5 year-bank loans, on which marketable securities valued at P600,000 have been pledged as security, P400,000 due on June 30, 2026; P100,000 due on Dec. 31, 2026 | 500,000 |
Arising from advances by officers, due June 30, 2026 | 50,000 |
Reserve for general contingencies | 400,000 |
Employees’ income tax withheld | 20,000 |
Advances received from customers on purchase orders | 64,000 |
Containers’ deposit | 50,000 |
Accounts payable arising from purchase of goods, net of debit balances of P40,000 | 170,000 |
Cash dividends payable | 80,000 |
Stock dividend payable | 100,000 |
Dividends in arrears on preferred stock, not yet declared | 200,000 |
Convertible bonds, due January 31, 2027 | 1,000,000 |
First mortgage serial bonds, payable in semi-annual installments of P50,000, due April 1 and October 1 | 2,000,000 |
Overdraft with Allied bank | 90,000 |
Cash in bank balance with PNB | 390,000 |
Estimated damages to be paid as a result of unsatisfactory performance on a contract | 160,000 |
Estimated expenses on meeting guarantee for service requirements on merchandise sold | 120,000 |
Estimated premiums payable | 75,000 |
Deferred revenue | 87,000 |
Accrued interest on bonds payable | 360,000 |
Common stock warrants outstanding | 120,000 |
Common stock options outstanding | 210,000 |
Unused letters of credit | 400,000 |
Deficiency VAT assessment being contested | 500,000 |
Notes receivable discounted | 200,000 |
On March 31, 2026, the P400,000 notes payable were replaced by an 18-month note for the same amount. Atlanta is considering similar action on the P100,000 note payable due on December 31, 2026. The 2025 financial statements were issued on March 31, 2026.
On December 1, 2025, a former employee filed a lawsuit seeking P200,000 for unlawful dismissal. Atlanta’s attorney believes that the suit is without merit. No court date has been set.
Questions: Based on the above and the result of your audit, compute the following as of December 31, 2025:
- Total current liabilities?
- Total noncurrent liabilities?
- Total liabilities?
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