he following notes payable were in the records of Baguio Incorporated as of December 31, 2022:A 5%, 4-month notes payable dated October 31, 2022 in the amount of P620,000. The company entered into an agreement to refinance the notes payable by issuing another 6%, P620,000; 2- year note. The agreement was made on December 29, 2022.A 4%, 6-month notes payable dated September 1, 2022 for P600,000. As of December 31, 2022, Baguio has the intent to extend the payment of the notes payable on September 1, 2025. The agreement provides that the discretion of the roll-over of the payment can be made by Baguio Incorporated. Baguio communicate the matter with payee on January 3, 2023.A 3% notes payable issued this year for P750,000 with a term of five years. Terms of the note give the holder the right to demand immediate payment if the company fails to make monthly interest payment within 30 days from the date payment is due. As of December 31, 2022, Baguio is two months behind in paying its required interest payments.How much is reported as total current liabilities as of December 31, 2022?

Answered: d the payment of the notes payable on…

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 3E: Non-Interest-Bearing Notes Payable On November 16, 2019, Clear Glass Company borrowed 20,000 from...

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he following notes payable were in the records of Baguio Incorporated as of December 31, 2022:

A 5%, 4-month notes payable dated October 31, 2022 in the amount of P620,000. The company entered into an agreement to refinance the notes payable by issuing another 6%, P620,000; 2- year note. The agreement was made on December 29, 2022.
A 4%, 6-month notes payable dated September 1, 2022 for P600,000. As of December 31, 2022, Baguio has the intent to extend the payment of the notes payable on September 1, 2025. The agreement provides that the discretion of the roll-over of the payment can be made by Baguio Incorporated. Baguio communicate the matter with payee on January 3, 2023.
A 3% notes payable issued this year for P750,000 with a term of five years. Terms of the note give the holder the right to demand immediate payment if the company fails to make monthly interest payment within 30 days from the date payment is due. As of December 31, 2022, Baguio is two months behind in paying its required interest payments.

How much is reported as total current liabilities as of December 31, 2022?

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