Solve and explain the reason why it is the answer. 5. Poof Co. has total current liabilities of P3,120,000 on Dec. 3120x1 before possible adjustment for the following:Poof Co.'s authorized capitalization was fully issued. Duringthe year, Poof Co. filed an amended Articles of Incorporationwith the Securities and Exchange Commission (SEC)increasing its authorized capitalization. Although the SEC'sapproval was not yet received, Poof Co. started receivingdeposits for future subscription of its shares. A total ofP480,000 were collected and credited to "Subscribed Capital."Per agreement with the subscribers, the deposits are to bereimbursed immediately if in case the SEC rejects Poof Co.'sapplication for increased capitalization. Poof Co. expects toreceive the SEC's decision in April 20x2.Included in the total current liabilities is a bank loan ofP600,000 that is maturing on July 1, 20x2. On February 14,20x2, Poof Co. entered into a refinancing agreement with thebank to extend the repayment of the loan to July 1, 20x5. Theoriginal loan agreement provides for such renewal option, andas of Dec. 31, 20x1, Poof Co. has complied with all theconditions relating to the extension of the loan repayment.Poof Co.'s financial statements were authorized for issue onMarch 15, 20x2.How much is the adjusted total current liabilities on Dec, 31, 20x1?a. 2,520,000b. 3,000,000c. 3,120,000d. 3,600,000

Current liabilities are the obligations repayable within a year. It is a part of liabilities' side…

Answered: - adjusted total current liabilities

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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In its first year of operations, Wildhorse Corporation purchased, available-for-sale debt securities costing $65.000 as a long-term investment. At December 31, 2022, the fair value of the securities is $60,500. Show the financial statement presentation of the securities and related accounts. Assume the securities are noncurrent. (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses eg. (45)) WILDHORSE CORPORATION Balance Sheet 4 $
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9. On August 20, 2025, Micco Co. decides to invest excess cash of $3,200 by purchasing Finch, Inc. bonds. At year-end, December 31, 2025, the market price of the bonds was $2,600. The investment is categorized as available-for-sale debt. Journalize the adjusting entry needed at December 31, 2025. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Dec. 31, 2025
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4 Required information. [The following information applies to the questions displayed below.] On December 31, Reggit Company held the following short-term investments in its portfolio of available-for-sale debt securities. Reggit had no short-term investments in its prior accounting periods. Available-for-Sale Securities Verrizano Corporation bonds Preble Corporation notes Lucerne Company bonds Cost $ 68,000 49,000 64,000 Prepare the December 31 adjusting entry to report these investments at fair value. General Journal Fair Value $ 66,640 43,610 61,440 Complete this question by entering your answers in the tabs below. Fair Value Adjustment Computation of fair value adjustment.
On December 31, Lujack Co. held the following short-term available-for-sale securities. Lujack had no short-term investments prior to the current period. Prepare the December 31 year-end adjusting entry to record the fair value adjustment for these debt securities.

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