Additional Information: · The 10% bank note payable is Issued on January 1, 2025, payable on demand and interest is payable every six months. The 12% bank note payable is a two-year note issued on July 1, 2024. · The 6%, 10-year mortgage note was issued on October 1, 2002. Terms of the note give the holder to demand payment if the company fails to make monthly interest payment. On December 31, 2025, ABC is three months behind in paying its required interest. What is the total amount of current liabilities on December 31, 2025?
The liabilities section of the balance sheet of ABC Company on December 31, 2025 detailed the following:
|
Accounts payable |
2,000,000 |
|
Notes payable-trade |
2,500,000 |
|
Bank note payable -10% |
800,000 |
|
Bank note payable -12% |
1,000,000 |
|
Accrued expenses |
350,000 |
|
Accrued interest payable |
500,000 |
|
Mortgage note payable-6% |
4,000,000 |
|
Bonds payable -10% due June 30, 2026 |
5,000,000 |
Additional Information:
· The 10% bank note payable is Issued on January 1, 2025, payable on demand and interest is payable every six months. The 12% bank note payable is a two-year note issued on July 1, 2024.
· The 6%, 10-year mortgage note was issued on October 1, 2002. Terms of the note give the holder to demand payment if the company fails to make monthly interest payment. On December 31, 2025, ABC is three months behind in paying its required interest.
What is the total amount of current liabilities on December 31, 2025?
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