Determine the current liability to be reported on december

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Question - BTS Corporation had the following unadjusted balances on specific accounts for the year ended December 31, 2020:

Accounts Payable, net of debit balances of P 50,000 - P 150,000

Accounts Receivable, net of credit balances of P 25,000 - P 250,000

Bonds Payable - P 453,000

Cash Dividends Payable - P 125,000

Stocks Dividend Payable - P 156,000

Unearned Subscription Revenue - P 654,00

Other details are as follows:

Of the Unearned Subscription Revenue balance, 25% were earned during 2020. Bonds Payable is due on July 31, 2025. However, a breach of contract related to the bonds occurred on December 18, 2020 and the payable becomes due on demand. On January 8, 2021, Tiffany and the lender reached a compromise and agreed that the payable will be due on July 31, 2023 instead of the original maturity date.

Required - Determine the current liability to be reported on December 31, 2020.

Reference no: EM133074395

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