Problem 1-8 (IAA)

Burma Company disclosed the following information about liabilities at year-end:

Accounts payable, after deducting debit balances in suppliers' 4,000,000

accounts amounting to P100,000
Accrued expenses 1,500,000
Credit balances of customers' accounts 500,000
Share dividend payable 1,000,000
Claims for increase in wages and allowance by employees of the 400,000
entity, covered in a pending lawsuit
Estimated expenses in redeeming prize coupons presented by 600,000
customers

What total amount should be presented as current liabilities at year-end?

a. 6,700,000 b. 6,600,000 c. 7,100,000 d. 7,700,000

Problem 1-9 (AICPA Adapted)

Gar Company disclosed the following liability account balances on December 31, 2020:

Accounts payable 1,900,000

Bonds payable 3,400,000
Premium on bonds payable 200,000
Deferred tax liability 400,000
Dividends payable 500,000
Income tax payable 900,000
Note payable, due January 31, 2021 600,000

On December 31, 2020, what total amount should be reported as current liabilities?

a. 7,100,000 b. 4,300,000 c. 3,900,000 d. 4,100,000