2. What total amount should be reported as current liabilities on December 31.2021? *Sunflower Company reported the following information on December 31, 2021:Ronds Payable10% Notes Payable, due February 1, 202212% Notes Payable, due May 1, 20257% Guaranteed debentures, due 20234,000,0002,000,0003,000,0001,000,000The bonds payable are 10-year, 8%, issued on June 30, 2012. Interest is payable annually onDecember 31.On December 30,2021, the P2,000,000 notes payable was replaced by a 15 month note for thesame amount.The 12% notes payable matures on May 1, 2025 but the creditor has the option of calling thenote or demanding payment on May 1, 2022. However, the call option is not expected to beexercised given the prevailing market condition.The annual sinking fund requirement on the guaranteed debentures is PS0,000 per year.A. 9.000,000B. 7,000,000O C. 3,000,000O D. 5,000,000E. None of them

Current liabilities are short-term obligations of the company. Those obligations which are to be…

2. What total amount should be reported as current liabilities on December 31, 2021? Sunflower Company reported the following information on December 31, 2021: Bonds Payable 10% Notes Payable, due February 1, 2022 12% Notes Payable, due May 1, 2025 7% Guaranteed debentures, due 2023 4,000,000 2,000,000 3,000,000 1,000,000 The bonds payable are 10-year, BN, issued on June 30, 2012. Interest is payable annually on December 31. On December 30,2021, the P2,000,000 nates payable was replaced by a 15 month note for the same amount. The 12% notes payable matures on May 1, 2025 but the creditor has the option of calling the note or demanding payment on May 1, 2022. However, the call option is not expected to be exercised given the prevailing market condition. The annual sinking fund requirement on the guaranteed debentures is PS0,000 per year. O A. 9,000.000 O B. 7,000,000 C. 3,000,000 O D. 5,000,000 E. None of them

2. What total amount should be reported as current liabilities on December 31, 2021? Sunflower Company reported the following information on December 31, 2021: Bonds Payable 10% Notes Payable, due February 1, 2022 12% Notes Payable, due May 1, 2025 7% Guaranteed debentures, due 2023 4,000,000 2,000,000 3,000,000 1,000,000 The bonds payable are 10-year, BN, issued on June 30, 2012. Interest is payable annually on December 31. On December 30,2021, the P2,000,000 nates payable was replaced by a 15 month note for the same amount. The 12% notes payable matures on May 1, 2025 but the creditor has the option of calling the note or demanding payment on May 1, 2022. However, the call option is not expected to be exercised given the prevailing market condition. The annual sinking fund requirement on the guaranteed debentures is PS0,000 per year. O A. 9,000.000 O B. 7,000,000 C. 3,000,000 O D. 5,000,000 E. None of them

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 91PSB

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