Accounts payable 750,000

Short term borrowings 400,000

Current portion of Mortgage payable 100,000
Bank loan payable 1,000,000
Total current liabilities 2,250,000
Answer C. 750,000

Cost of glass 200

Remittance from customer (50)
Net premium cost 150

Box tops to be redeemed ( 50% x 100000) 50,000

Box tops redeemed 40,000
Outstanding 10,000

Premium expense (50000/2 = 25000x150) 3,750,000

Estimated liability at year end

(10000/2=5000x150) 750,000
Number of premiums distributed in 2022 20,000
Number of premiums to be distributed in 2023 5,000
Total premiums in 2022 25,000

Premium expense for 2022 (25000x40) 1,000,000

Estimated liability - 12/31/2022 (5000x40) 200,000

Premiums distributed in 2023 50,000

Premiums to be distributed in 2024 3,000
Total 53,000
Premiums arising from 2022 sals distributed in 2023 (5,000)
Premiums applicable to 2023 48,000
Premium expense for 2023 (48000x40) 1,920,000

Estimated liability - 12/31/2023 (3000x40) 120,000

Answer: 8100000 Answer: b. 8,100,000
Answer: c. 1,500,000
Answer: a. 750,000
Answer: b. 475,000
Answer: b. 2,300,000
Answer: a. 2,025,000
Amount allocated to the points (1M/8Mx7M) 875,000
Points to be redeemed in 2022 (80%x50000) 40,000

Revenue from points for 2022 (15000/40000x875000) 328,125

Points to be redeemed in 2023 (85%x50000) 42,500

Total points redeemed to 12/31/2023 (15000+7950) 22,950

Cumulative revenue - 12/31/2023 (22950/425000x875000) 472,500

Revenue from points for 2022 (328,125)
Revenue from points for 20223 144,375

Points to be redeemed in 2024 (85%x50000) 42,500

Total points redeemed to 12/31/2024 (15000+7950+2550) 25,500

Cumulative revenue - 12/31/2024 (25500/42500x875000) 525,000

Cumulative revenue recognized in 2023 (472,500)
Revenue from points for 2024 52,500

Points to be redeemed in 2025 (90%x50000) 45,000

Total points redeemed to 12/31/2025 (15000+7950+2550+15000) 40,000

Cumulative revenue - 12/31/2025 (40500/45000x875000) 787,500

Cumulative revenue recognized in 2024 (525,000)
Revenue from points for 2025 262,500
Answer: a. 1,250,000
Warranty expense 1,900,000
Warranty liabilty (200,000)
Warranty expenditure 1,700,000
Warranty expense 2,400,000
Warranty liabilty (100,000)
Warranty expenditure 2,500,000

Estimated warranty liability (800,000 - 100,000) 700,000

Answer: c. 177,000
PV of N/P (600000x3.60) 2160000
PV of N/P(200000X5.712) 1,142,400
First payment - 12/31/2022 (200,000)
PV on N/P - 12/312022 942,400
Answer: b. 1,100,000
Accrued interest - March 1, 2021 to Feb 28, 2021 120,000
Accrued Interest - March 1, 2021 to Dec 31, 2022 112,000
Accrued interest payable 232,000
Contest prize expense 418,250
Discount on N/P 531,750
N/P - noncurrent 950,000

Contest prize expense 50,000

N/P - current 50,000
PV of 1, 8% 4 periods 3,675,000
PV of Ordinary Annuity of 1, 8% 4 periods 1,656,000
Total 5,331,000
Notes payable (5,000,000)
331,000 gain

PV of 1, 12% 3 periods 3,560,000

PV of Ordinary Annuity of 1, 12% 3 periods 1,201,000
Total 4,761,000
Notes payable (5,000,000)
(239,000) loss
a. ₱500,000
Answer: a. 2,250,780
Answer: c. 468,250
Carrying amount of loan on January 1, 20x1 4,563,000
Carrying amount of loan on December 31, 20x1 4,651,820