Reniva, King Joshua B.

BSA III
Intermediate Acctg. 2
Part 2
Problem 1. Grand Company
Answer: B. (7,300,000)
Solution:
Accounts Payable. 2,500,000
Notes Payable. 2,000,000
Credit Balance from the customers account. 400,000
Serial Bonds Payable. 2,000,000
Accrued Interest on Bonds Payable. 300,000
Unearned Rent Income. 100,000
Total Current Liabilities. P 7,300,000

Problem 2. Cool Company

Answer: C. (183,500)
Solution:
Accounts Payable. 95,000
Accrued Expense. 15,000
Credit Balance from Customer’s account. 13,500
Estimated Premium Liability. 60,000
Total Current Liabilities. P 183,500
Problem 3. Stem Corporation
Answer: D. (1,485,000)
Solution:
Unadjusted Accounts Payable. 1,350,000
FOB Shipping Point not yet recorded. 75,000
Unreleased Check. 60,000
Adjusted Accounts Payable. P 1,485,000

Problem 4. Lovely Corporation

Answer : C. ( 1,530,000)
Solution:
Unadjusted Current Liabilities 1,500,000
Purchase Return. (45,000)
Unearned Income. 75,000
Total Current Liabilities P 1,530,000