Intermediate Accounting

Problem 1-9 Hold Campany estimated the annual warranty expense 2% of annual net sales. The net sales for 2017 amounted to P4,000,000. On January 1, 2017, the warranty liability was P60,000 and the warranty payments during 2017 totalled P5 0,000. What is the estimated liability on December 31, 201 7? Problem 1-10 On December 31, 2010, the bookkeeper of Flare Company provided the following information. Accounts Payable, including deposits and advances from customers of P450000 1,250,000 Notes Payable, including note payable to bank on December 31, 2020 of P250,000 1,500,000 Stock Dividends Payable 400,000 Credit balances in customers' accounts 200,000 Serial bonds payable in semi-annual instalment of P750000 5,000,000 Term Bonds Payable 4,750,000 Cash Dividends Payable 1,200,000 Accrued interest on bonds payable 150,000 Contested BIR tax assessment possible obligation 300,000 Unearned rent income 100,000 Required: Compute the total current liabilities on December 31, 201 8