Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer with detailed explanation LMN Company provided the following account balance on December 31, 2020: Accounts payable P450,000 Notes payable 900,000 Income tax payable

please answer with detailed explanation image text in transcribed

LMN Company provided the following account balance on December 31, 2020: Accounts payable P450,000 Notes payable 900,000 Income tax payable 96,000 Deferred tax liability 120,000 Further analysis of LMN Company' accounts revealed the following: Accounts payable included the following: Customer credit balance, P30,000. Debit balances in suppliers' accounts P80,000 which was deducted. Advances from shareholders, P200,000; call date April 1, 2022. Notes payable included the following: .6%, 3-year note, face amount P500,000 from Luck Company, due date March 31, 2021. On December 30, 2020, Soft Company and Luck Company signed a refinancing contract that will extend the due date to March 31, 2023. 8%, 3-year note, face amount P400,000 from Joy Company, due date August 1, 2021. On January 1, 2021, Soft Company and Joy Company completed a refinancing contract that will extend the due date to August 1, 2022. How much is the total current liabilities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Income Tax Fundamentals 2013

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

31st Edition

1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516

Students also viewed these Accounting questions