In the audit of Atlanta Corporation’s financial statements on December 31, 2025, the chief accountant of the staid corporation provided the following information:

Notes payable:
Arising from the 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, 2026; P100,000 due on Dec. 31, 2026	500,000
Arising from advances by officers, due June 30, 2026	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 P40,000	170,000
Cash dividends payable	80,000
Stock dividend payable	100,000
Dividends in arrears on preferred stock, not yet declared	200,000
Convertible bonds, due January 31, 2027	1,000,000
First mortgage serial bonds, payable in semi-annual installments of P50,000, due April 1 and October 1	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 31, 2026, the P400,000 notes payable were replaced by an 18-month note for the same amount. Atlanta is considering similar action on the P100,000 note payable due on December 31, 2026. The 2025 financial statements were issued on March 31, 2026.

On December 1, 2025, a former employee filed a lawsuit seeking P200,000 for unlawful dismissal. Atlanta’s attorney believes that the suit is without merit. No court date has been set.

Questions: Based on the above and the result of your audit, compute the following as of December 31, 2025:

• Total current liabilities?

• Total noncurrent liabilities?

• Total liabilities?

Answer rating: 100% (QA)

Total current liabilities Particulars Amount P Notes payable Goods purchased 304000 Arising from 5 y... View the full answer