ANSWERS

6th Quiz CURRENT LIABILITIES

THEORY:
1. Accrue
4. Disclose
2. Disclose
5. Disclose
3. Neglect
6. Disclose
13.
14.Problem 1:
15.Accounts Payable (4, 000, 000 + 100,
000 + 50, 000)

18.Credit balances in customers

accounts

21.Premiums Payable

24.Deferred Revenues

27.Accrued Expenses

30.Total current liabilities

33.
34.
35.Problem 2
36.Cas
h
41.

37.

42.Gift
certificate
Payable

38.72,
00
0
43.

7. Disclose
8. Accrue
9. Accrue

16.4,
15
0,
00
0
19.50
0,
00
0
22.60
0,
00
0
25.17
5,
00
0
28.15
0,
00
31. 5,
57
5,
00
0

39.

17.
3

20.
1

23.
1

26.
1

29.
1

32.
2

40.
2

44.7
2
,

45.

0
0
0
46.

47.

48.

49.

51.GC
Pay
abl
e
56.Cas
h

52.

53.22,
50
0

54.

58.11,
25
0
63.

59.

61.

57.

62.Sales

50.

55.
3

64.3
3
,

60.
65.

10.Accrue
11.Disclose
12.Disclose

7
5
0
66.

67.

68.

69.

71.GC
Pay
abl
e
76.

72.

73.42,
30
0

74.

77.Sales

78.

70.

75.
2

79.4
2
,

80.

3
0
0
81.
85.
90.GC
Pay
abl
e
95.

82.(72, 000 * 90%) 22,

500
86.
87.
91.

96.Sales (GC
Forfeited)

92.7,
20
0
97.

83.

84.

88.

89.

93.
94.
2

98.7
,
99.

2
0
0
100.
101.
102.
103.
104.
105.
106.

Problem 3:
B = 25% (I 1, 000, 000 B)
B = 25% (1.6 1M B)
B = 25% (600K B)

107.
108.
109.

B = 150, 000 0.25B

1.25B = 150, 000
B = 120, 000
5

110.
111.
112.
113.
114.
115.
116.
Purcha
ses
121.

Bonus (Salaries) Expense

120, 000
Bonus (Salaries) Payable
120, 000 2

Problem 4:
117.

122.
Accou
nts Payable

118.
200,
00
0
123.

126.

127.

128.

131.
Purcha
ses

132.

133.
80,
00
0
138.

136.

137.
Accou
nts Payable

119.
120.
2

124.
20
0
,
0
0
0
129.

158.

149.
154.
Accou
nts Payable

159.

162.
167.

171.

163.

176.
181.

185.

(40, 000 + 28,

000)
164.

Accounts Payable

172.

Purch
ases

177.
Accounts Payable

186.

150.
68,000
155.

Purch
ases

168.
56,
00
0
173.

178.
182.
56,
00
0
187.

130.

134.
135.
2

139.
80,
0
0
0

141.
(80, 000 is already the invoice price
(list price trade discounts).
143.
144.
145.
146.
148.
Cash
153.

125.

151.
156.
68,
0
0
0
160.
165.

140.

142.
147.
152.
2

157.

161.
166.

169.
170.
2

174.
56,
0
0
0
179.

175.

180.

183.
184.
2

188.
56,

189.

0
0
0
190.
191.

Accounts Payable unadjusted

194.

197.

200.

203.

206.

209.

Total accounts payable

212.
213.
214.
215.

219.

223.

227.

231.

Problem 5:
Salaries Expense

216.
776,
00
0
220.
Withholding Tax
Payable

224.
Social Security
Payable

228.

232.

Philhealth Payable

Pag ibig Payble

192.
4,
00
0,
00
0
195.
200,
00
0
198.
80,
00
0
201.
68,
00
0
204.
(56,
00
0)
207.
(60,
00
0)
210.
4,
23
2,
00
0

193.
1

196.
1

199.
1

202.
1

205.
1

208.
1

211.
2

217.
218.
2

221.
56,0
0
0
225.
64,
0
0
0
229.
16,
0
0
0
233.
14,
0

222.

226.

230.

234.

235.

239.
243.

236.
Salaries Payable
(Cash)

240.

249.

244.
94,
00
0
247.
Social Security
Payable
250.
Philhealth Payable

252.

253.

246.

Salaries Expense

Pag ibig Payble

255.
256.
Withholding Tax
Payable
259.
Social Security
Payable

262.

Philhealth Payable

265.

Pag ibig Payable

268.

271.
272.
273.
274.

278.

Problem 6:
Warranty Expense

283.

286.

Premium

291.

242.

248.
64, 000
251.
16, 000
254.
14, 000
258.

275.
95,
00
0

276.

287.
270,
00
0
Premium Expense

238.

245.

257.
56,000
260.
128,
00
0
263.
32,
00
0
266.
14,
00
0
269.

279.
Estimated
Warranty Liability

282.

290.

Cash

0
0
237.
626,
0
0
0
241.

261.

264.

267.

270.
244,
0
0
0

277.
2

280.
95,
0
0
0
284.

281.

285.

288.
289.
2

292.
270,
0

293.

294.

295.

298.
Cash

299.

303.

307.

312.
317.

321.

325.
326.
327.

328.
329.
330.
331.
332.
333.
334.
335.
336.
337.
338.
339.
340.
341.
342.
343.
344.
345.
346.
347.
348.
349.
350.
351.
352.
353.
354.
355.
356.

0
0
296.

Premium Expense

308.
ums

Premi

313.
Premium Expense

300.
25,
00
0
304.
31,
25
0
309.

314.
318.
13,
75
0

322.
Estimated
Premium Liability

297.

301.
302.
3

305.
306.

310.
56,
2
5
0
315.

311.

316.

319.
320.
2

323.
13,
7
5
0

WARRANTY:
Estimated Total Warranty (1, 200 x 150)
Actually Paid
Estimated Warranty Liability

324.

180, 000 1
( 85, 000) 1
95, 0002

PREMIUM:
Total
Estimated to be redeemable

1, 200, 000
x 60%
720, 000
Redeemed
(500, 000)
Redeemable
220, 000
Divided by
400 coupons
Number of premiums redeemable in the future
550
X
25
Estimated Premium Liability
13, 7505
Problem 7:
PV 1, 200, 000 x 0.6830
Face value
Discount on Note Payable
12/31/14
Equipment
Discount on Note Payable
Note Payable

819, 600
1, 200, 000
380, 4004

819, 000
380, 400

12/31/15
Depreciation Expense
Accumulated Depreciation
(819 600 150, 000)/5 = 133, 920 5

1, 200, 0003

133, 920
133, 920 2

357.
358.

Interest Expense
81, 960
Discount on Note Payable
81, 960 2

359.
360.
361.

2.
Date

365.

12/31/14

369.

12/31/15

370.

81, 960

373.
377.

12/31/16
12/31/17

374.
378.

90, 156
99, 171.6

381.
382.

362.
Interest
Expense
366.

363.
Carrying
Amount
367.
819,
6004
371.
901,
5604
375.
991, 716
379.
1, 090,
887.64

364.
368.

NC2

372.

NC2

376.
380.

C2