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Doll Company is selling sounds and lights equipment. The company's fiscal year ends on March 31. The following information relates to the obligation of the company as of March 31, 2021:
Trade Payables
Accounts payable for suppliers, goods, and services purchases on open account amount to P1,670,000 as of March 31, 2021 before considering of the following items:
- On March 31, 2021, the company has a P50,000 debit balance in its accounts payable to a supplier, resulting from a P50,000 advance payment for goods odered by the company.
- The balance also includes an advance payment of P20,000 made by a customer to Doll in anticipation of a purchase to be made by the customer in April 2021.
- Additional information:
A. Goods were in transit to the company from a vendor on March 31, 2021. The invoice cost was P35,000. The goods were shipped FOB seller on March 29, 2021 and were received on April 4, 2021.
B. Goods shipped FOB destination on March 21, 2021, from a vendor to the company were received on March 31, 2021. The invoice cost was P25,000.
Payroll
Wages and payroll expense amounted to P890,000 for the last payroll period ending on March 31, 2021. Additional information are as follows:
- Income tax withheld - P100,000
- SSS, PhilHealth, and HDMF contributions, Employee's share - P10,000
- SSS, PhilHealth, and HDMF Contibutions, Employer's share - P15,000
Notes Payable
Doll Company has signed several long-term notes with financial institutions. The maturities of these notes are given below. The total unpaid interest for all of these notes amounts to P408,000 on March 31, 2021.
| Due Date | Amount |
| April 30, 2021 | P720,000 |
| July 31, 2021 | 1,080,000 |
| September 1, 2021 | 540,000 |
| February 1, 2022* | 540,000 |
| April 1, 2022 to March 31, 2023 | 3,240,000 |
*With respect to the note due on February 1, 2022, Doll Company has a present unconditional right to defer the payment of the note for another one (1) year from the original maturity date.
Estimated Warranties
Doll Company has a one year product warranty on some selected items. The estimated warranty liability on sales made during the 2019-2020 fiscal year and still outstanding as of March 31, 2020, amounted to P302,400. The warranty costs on sales made from April 1, 2020 to March 31, 2021, are estimated at P756,000. The actual warranty costs incurred during 2020 to 2021 fiscal year are as follows:
| Warranty Claims honored on 2019-2020 sales | P300,000 |
| Warranty Claims honored on 2020-2021 sales | 345,000 |
| Total | P645,000 |
Note: Unused warranies from prior fiscal year were expired on March 31, 2021.
Dividends
On March 10, 2021, the company's board of directors declared a cash dividend of P0.20 per ordinary share and a 10% ordinary share dividend. Both dividends were to be distribued on April 5, 2021 to shareholders on record at the close of business on March 31, 2021. As of March 31, 2021, the company has 1 million, P2 par value, ordinary shares issued and 500,000 ordinary shares in treasury.
Bonds Payable
The company issued P6 million, 11% bonds, on March 31, 2020 when the prevailing rate was 10%. The bonds will mature on March 31, 2025. Interest is paid semiannualy on March 31 and September 30. The company uses he effective interest rate method. (Round off present value factors to four decimal places and your final answer to the nearest peso.)
Based on the foregoing information, determine the adjusted balances of the following as of March 31, 2021.
- Trade and other payables
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