Problem 1: Current Assets

The ledger of ABC Co. as of December 31, 20x1 includes the following:

Cash 5,000.00
Trade accounts receivable (net of P 5,000 credit balance in accounts) 20,000.00
Held for trading securities 40,000.00
Financial assets designated at FVPL 15,000.00
Investment in equity securities at FVOCI 35,000.00
Investment on bonds measured at amortized cost (due in 3 years) 30,000.00
Prepaid assets 5,000.00
Deferred tax assets (expected to be reversed in 20x2) 6,000.00
Investment in Associate 18,000.00
Invetsment Property 23,000.00
Sinking Fund 19,000.00
Property, Plant and Equipment 50,000.00
Goodwill 14,000.00
TOTALS 280,000.00

Required: Compute for the total current assets

Cash 5,000.00
Trade accounts receivable 25,000.00
Held for trading services 40,000.00
Financial assets designated at FVPL 15,000.00
Prepaid assets 5,000.00
Total current assets 90,000.00
Problem 2: Current Liabilities

The ledger of ABC Co. as of December 31, 20x1 includes the following:

Bank overdraft
Trade accounts payable (net of P 5,000 debit balance in accounts)
Notes Payable (due in 20 semi-annual payments of P 2,000)
Interest Payable
Bonds Payable (due on March 31, 20x2)
Discounts on Bonds payable
Dividends Payable
Share Dividends Payable
Deferred Tax Liability
Income Tax Payable
Contingent Liability
Reserve for contingencies
TOTALS

Required: Compute for the total current liabilities

Bank overdraft
Trade account payable
Notes payable
Interest payable
Bonds payable 35,000.00
Discount on Bonds payable -15,000.00
Dividends payable
Income tax payable
Total current liabilities
 5,000.00
20,000.00
40,000.00
15,000.00
35,000.00
- 15,000.00
5,000.00
6,000.00
18,000.00
22,000.00
50,000.00
14,000.00
215,000.00

5,000.00
25,000.00
4,000.00
15,000.00

20,000.00
5,000.00
22,000.00
96,000.00
Problem 3: Current and Non Current Liabilities

The ledger of ABC Co. as of December 31, 20x1 includes the following:

10% Note Payable 40,000.00

12% Note Payable 60,000.00
14% Mortgage Note Payable 30,000.00
Interest Payable -
TOTALS 130,000.00

Additional Information:
1 ABC Co.'s financial statements were authorized for issue on April 15, 20x2.
2 The 10% note payable is due on July 1, 20x2 and pays semi-annual interest every July 1
and December 31. On January 28, 20x2, ABC Co. entered into a refinancing agreement with
a bank to refinance the entire note by issuing a long-term obligation.
3 The 12% note payable is due on march 31, 20x2 and pays annual interest every March 31.
On January 31, 20x2, ABC Co. extended the maturity of the note to March 31, 20x3 under
the existing loan agreement. The extension of maturity date is at the option of ABC Co.
4 The 14% mortgage note is due on December 31, 20x9. per agreement with the creditor.
ABC Co. is to pay quarterly interests on the note, failure to do so will render the note payable
on demand. ABC Co. failed to pay the 3rd and 4th quarterly interests on the note during 20x1.

Required: Compute for the total current liabilities

10% Notes payable 40,000.00

Interest payable on 12% notes payable 5,400.00
14% Mortgage note payable 30,000.00
Interest payable on 14% note payable 2,100.00
Total current liabilities 77,500.00
Problem 3: Current and Non Current Liabilities

The ledger of ABC Co. as of December 31, 20x1 includes the following:

15% Note Payable 25,000.00

16% Bonds Payable 50,000.00
18% Serial Bonds Payable 100,000.00
Interest Payable -
TOTALS 175,000.00

Required: Compute for the total current liabilities

Additional Information:
1 ABC Co.'s financial statements were authorized for issue on April 15, 20x2.
2 The 15% note payable was issued on January 1, 20x1 and is due on Jnauary 1, 20x5.
The note pays annual interest every year-end. The agreement with the lender provides
that ABC Co. shall maintain an average current ratio of 2:1. If at any time the current
ratio falls below the agreement, the note payable will become due on demand. As of the
the 3rd quarter in 20x1, ABC Co.'s informed the lender of the breach of the agreement.
On December 31, 20x1, the lender gave ABC Co. a grace period ending on December 31,
20x2 to rectyify the deficiency in the current ratio. ABC Co. promised the creditor to liquidate
some of its long-term investments in 20x2 to increase its current ratio.
3 The 16% bonds are 10-year bonds issued on December 31, 1992. The bonds pay annual
interest every year-end.
4 The 18% serial bonds are issued at face amount and are due in semi-annual installments
of P 100,000 every April 1 and September 30. Interests on the bonds are also due
semi-annually. The last installment on the bonds is due on September 30, 20x7.

16% Bonds Payable 50,000.00

Interest payable on 18% serial bonds payable 4,500.00
Total current liabilities 54,500.00