You were able to obtain the following from the accountant for Agdangan Corp. related to the companys liabilities as of December 31, 2007. Accounts payable P650,000 Notes payable trade 190,000 Notes payable bank 800,000 Wages and salaries payable 15,000 Interest payable ? Mortgage notes payable 10% 60,000 Mortgage notes payable 12% 1,500,000 Bonds payable 2,000,000

The following additional information pertains to these liabilities. All trade notes payable are due within six months of the balance sheet date. Bank notes-payable include two separate notes payable to Allied Bank. a. A P300,000, 8% note issued March 1, 2005, payable on demand. Interest is payable every six months. b. A 1-year, P500,000, 11 % note issued January 2, 2007. On December 30, 2007, Agdangan negotiated a written agreement with Allied Bank to replace the note with a 2-year, P500,000 10% note to be issued January 2,2008. The interest was paid on December 31, 2007. The 10% mortgage note was issued October 1, 2004, with a term of 10 years. Terms of the note give the holder the right to demand immediate payment if the company fails to make a monthly interest payme within 10 days of the date the payment is due. As of December 31, 2007, Agdangan is three months behind in paying its required interest payment. The 12% mortgage was issued May 1, 2001, with a term of 20 years. The current principal amount due is P1,500,000. Principal and interest payable annually on April 30. A payment of P220,000 is due April 30, 2008. The payment includes interest of P180,000. The bonds payable is 10-year, 8% bonds, issued June 30, 1998. Interest is payable semi-annually every June 30 and December 31.

Questions: Based on the above and the result of your audit, answer the following: 1. Interest payable as of December 31, 2007 is A. P155,000 B. P143,000 C. P203,000 D. P215000 2. The portion of the Note Payable-bank to be reported under current liabilities as of December 31, 2007 is A. P300,000 B. P500,000 C. P800,000 D. P0 3. Total current liabilities as of December 31, 2007 is A. P3,950,000 B. P4,138,000 C. 3,938,000 D. P3,998,000 4. Total non-current liabilities as of December 31, 2007 is A. P1,760,000 B. P2,560,000 C. P3,960,000 D. P1,960,000

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