Cute Company disclosed the following information on December 31, 2021: SSS payableP20,000Notes PayableP40,000Deferred tax liabilityP10,000Notes payable due to bank, 12% interest bearing note payable yearly,issued on August 31, 2021, maturing on August 31, 2022P1,000,000 Note: In the case of the notes payable due to bank, supposing the entity has the discretion to refinance the obligation for at least 12 months after the given maturity date, as seen in its loan agreement,Required:Compute for the current liabilities as of December 31, 2021

Notes 1. Current Liability: A liability is current if it is payable within 12 months. 2. Non…

Answered: Cute Company disclosed the following…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 2EA: Consider the following accounts and determine if the account is a current liability, a noncurrent...

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Cute Company disclosed the following information on December 31, 2021:

SSS payable	P20,000
Notes Payable	P40,000
Deferred tax liability	P10,000
Notes payable due to bank, 12% interest bearing note payable yearly, issued on August 31, 2021, maturing on August 31, 2022	P1,000,000

Note: In the case of the notes payable due to bank, supposing the entity has the discretion to refinance the obligation for at least 12 months after the given maturity date, as seen in its loan agreement,

Required:

Compute for the current liabilities as of December 31, 2021

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