CURRENT LIABILITIES - TIP

3. In the audit of the John Paul Corporations financial statements at December 31, 2014, the chief accountant of
the said corporation provided the following information:
Notes payable:
Arising from purchase of goods 304,000
Arising from 5 year-bank loans, on which marketable securities
valued at P600,000 have been pledged as security, P400,000 due
on June 30, 2015; P100,000 due on Dec. 31, 2015 500,000
Arising from advances by officers, due June 30, 2015 50,000
Reserve for general contingencies 400,000
Employees income tax withheld 20,000
Advances received from customers on purchase orders 64,000
Containers deposit 50,000
Accounts payable arising from purchase of goods,
net of debit balances of P30,000 170,000
Accounts receivable, net of credit balances P40,000 360,000
Cash dividends payable 80,000
Stock dividends payable 100,000
Dividends in arrears on preferred stock, not yet declared 200,000
Convertible bonds, due January 31, 2016 1,000,000
First mortgage serial bonds, payable in semi-annual installments
of P50,000, due April 1 and October 1 of each year 2,000,000
Overdraft with Allied Bank 90,000
Cash in bank balance with PNB 390,000
Estimated damages to be paid as a result of unsatisfactory
performance on a contract 160,000
Estimated expenses on meeting guarantee for service
requirements on merchandise sold 120,000
Estimated premiums payable 75,000
Deferred revenue 87,000
Accrued interest on bonds payable 360,000
Common stock warrants outstanding 120,000
Common stock options outstanding 210,000
Unused letters of credit 400,000
Deficiency VAT assessment being contested 500,000
Notes receivable discounted 200,000

On March 1, 2015, the P400,000 note payable was replaced by an 18-month note for the same amount. John
Paul is considering similar action on the P100,000 note payable due on December 31, 2015. The 2014 financial
statements were issued on March 31, 2015.

On December 1, 2014, a former employee filed a lawsuit seeking P200,000 for unlawful dismissal. John Paul
attorneys believe that the suit is without merit. No court date has been set.

On January 15, 2015, the BIR assessed John Paul an additional income tax of P300,000 for the 2009 tax year.
John Paul attorneys and tax accountants have stated that it is likely that the BIR will agree to a P200,000
settlement.

Based on the above and the result of your audit, compute for the following as of December 31, 2014:

1. Total current liabilities

a. P2,500,000 b. P2,100,000 c. P2,300,000 d. P2,400,000
2. Total noncurrent liabilities
a. P3,300,000 b. P2,900,000 c. P3,000,000 d. P3,400,000

3. Total liabilities
a. P5,200,000 b. P5,000,000 c. P5,400,000 d. P5,800,000