FB Company is preparing its December $31,2023$ statement of financial position.

The following items may be reported as either current or non$-$current liability:

On December $15,2023,$ FB Company declared a cash dividend of P$2\mathrm{.}50$ per

share to shareholders of record on December $31.$ The dividend is payable

on January $15,2024.$ FB had issued $800,000.$ ordinary shares, of which

$50,000$ shares are held in the treasury. On this same date, FB declared a

$10\%$ bonus issue to shareholders of record on December $31,2023.$ The

dividend will be distributed on January $31,2024.$ FB Company's ordinary

share has a par value of R$10$ and a market value per share of P$28.$

At December $31,2023,$ bonds payable of P$10$ million are outstanding. The

bonds were issued on September $30,2023$ and mature in annual

installments of P$2\mathrm{.}5$ million starting September $30,2024.$ Interest of $12\%$

on the outstanding balance is payable annually every anniversary date of

the bond.

At December $31,2022,$ customer advances were P$2$ million. During $2023,$

FB Company collected P$4$ million of customer advances and advances of

P$2\mathrm{.}5$ million were earned.

At December $31,2023,$ retained earnings appropriated for future inventory

losses is P$1\mathrm{.}5$ million.

$(2)$ How much of the foregoing should be reported as current liabilities at

December $31,2023?$

a$.\mathrm{????}10,275,000$

b$.,\mathrm{????}9,675,000$

c$.\mathrm{????}8,175,000$

d$.\mathrm{????}6,300,000$

Answer rating: 100% (QA)

To determine the amount of current liabilities at December 31 2023 we need to classify the given ite... View the full answer