The total liabilities of ABC Company for the period ending December 31, 2021 amounted to P300,000. This balance includes thefollowing items:Notes Payable due in 3 yearsP100,000Interest Payable3,200Accounts Payable140,800Accrued Salaries Expense35,000Accrued Interest Income4,000Unearned Commissions Income12,000Unused Office Supplies5,000What is the correct amount of ABC Company's total liabilities? ABC Company started its business operations on November 2, 2021. The following were the transactions during the month:Nov. 2, 2021The owner made a cash investment to the business amounting to P2,000,000.Nov. 5, 2021Obtained a P500,000 loan and issues a promissory note to Citibank.Nov. 8, 2021Acquired land costing P1,000,000 on cash basis.Nov.16, 2021Rendered services worth P1,200,000 on account.Nov.30, 2021Paid salaries of the workers amounting to P280,000.How much is the owner's capital balance at the end of its first month of operation?

Solution A liability is the the amount that is owed by the company not owned. These includes…

Answered: nterest Payable 3,200 Accounts Payable…

nterest Payable 3,200 Accounts Payable 140,800 Accrued Salaries Expense 35,000 Accrued Interest Income 4,000 Unearned Commissions Income 12,000 Unused Office Supplies 5,000

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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