Valix Finacc vol 2 Problem 1-10

Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 1 Problem 1-10

1.  Current liabilities:

            Accounts payable                                                              7,000,000

            Note payable – bank                                                         12,000,000

            Accrued expenses                                                              4,000,000     23,000,000

      Noncurrent liabilities:

            Mortgage payable                                                             4,000,000

            Note payable due 2010                                                       3,000,000       7,000,000

      Total liabilities                                                                                                    30,000,000

2.      The note payable to bank is paid from the proceeds of the issuance of share capital of P4,000,000 on January 31, 2009 and the availment of a financing agreement on February 15, 2009 with a financially capable commercial bank on April 1, 2009 in the amount of P3,000,000. Nevertheless, the note payable should continue to be classified as current.