Multiple Choice Identify the choice that best completes the statement or answers the question. 1. On December 31, 2021, the bookkeeper of the Angel Company gave the following information: Notes payable arising from purchases of goods, P472,000; arising from ST-loans from banks, 200,000 on which trading securities valued at 280,000 have been pledged as security; arising from long-term advances by officers, 250,000. Employees' income taxes payable, 9,600. Advances received from customers on purchase orders, 64,000 Accounts payable arising from purchases of goods, 380,000. Customers' accounts with credit balances arising from sales returns, 26,000 Share dividends distributable, 240,000. First mortgage serial bonds, 1,500,000 payable in semi-annual installments of 50,000 due on April 1 and October 1 of each year. Cash overdraft with ABC Commercial Bank, 50,000. Estimated damages to be paid as a result of unsatisfactory performance on a contract, 24,000 Estimated expenses of meeting guarantee for service requirement on merchandise sold, 48,000. Accrued interest on bonds payable, 57, 500. What total current liabilities shall be presented in the statement of financial position as of December 31, 2021? a. 1,431, 100 b. 1,609,100 c. 1,921, 100 d. 3,321,100 2. The following liability account balances on December 31, 2019 was reported by Tricia Company: Accounts Payable 3,000,000 Bonds Payable, due 2021 2,700,000 Premium on bonds payable 300,000 Deferred Tax Liability 420,000 Income Tax Payable 900,000 Dividends in Kind due on March 3, 2020 1,200,000 Note Payable due January 1, 2021 780,000 The deferred tax liability is based on temporary differences stemming from different depreciation method for financial reporting and income purposes. What amount should be treated as Current liabilities on December 31, 2019? a. 5,400,000 b. 5,520,000 c. 5,700,000 d. 5, 100,000J L 3. Gisel Company has the following info of the liabilities as of December 31, 2021: 10% note payable that was issued October 1, 2021, maturing September 30, 2022 2,230,000 8% note payable issued July 1, 2021, payable in 10 equal annual installments of 330,000 beginning June 30, 2022 3,300,000 The business\" financial statements were issued on March 15, 2022. On February 3I 2022, the whole 2,230,000 of the 10% note was refinanced through issuance of a long-term liability payable in lump sum. Furthermore, on December 27 2021 the business consummated a non- cancelable agreement with a creditor to refinance the 8% note on a long term basis. The amount of short-term liabilities on December 31, 2021 financial statements is: a. 5,530,000 b. 2,230,000 c. 3,300,000 d. 1,070,000 4. JP Enterprise has a 5,000,000 note payable due on July 1, 2021. The entity signed an agreement on December 31, 2020 to borrow up to 5,000,000 to refinance the note payable on a long term basis. The financing called for borrowing not exceeding the 60% of the value of the collateral to be provided by the business enterprise. On December 31, 2020, the value of the collateral was 2,450,000. The amount of the note payable that should be reported as non-current liability is: a. 5,000,000 b. 3,530,000 c. 2,450,000 d. 1,470,000 5. Joseph Company owns a car dealership that it uses for servicing cars under warranty. The entity's experience with warranty claims is that 60% of all cars sold in a year have zero defect, 25% of all cars sold in a year have normal defect, and 15% of all cars sold in a year have significant defect. The cost of rectifying a \"normal defect" in a car is 10,000. The cost of rectifying a \"significant defect" in a car is 30,000. The entity sold 500 cars during the year. What is the \"expected value" of the provision for warranty for the current year? a. 3,500,000 b. 1,750,000 c. 1,400,000 d. 4,000,000 6. The 022 Company launched a new sales promotional program. For every 10 chewing gum box tops returned to 022, customers receive an attractive prize. Dzz estimates that 40% of the chewing gum box tops reaching the consumer market will not be redeemed. Additional information is as follows: Units Amount Sales of chewing gum {in boxes) 3,000,000 3,600,000 Purchase of prizes by 022 80,000 40,000 Prizes distributed to customers 42,000 7 i J L At the end of the year, Ozz recognized a provision equal to the estimated cost of potential prizes outstanding. What is the amount of this provision? a. 69,000 0. 49,000 c. 39,000 d. 21,000