Note Company provided the following information on its notes payable as of December 31, 2020:Note payable - due April 31, 2021 ₱1,000,000Note payable - due Feb 28, 2021 ₱800,000Note payable - due December 31, 2021 ₱2,000,000 On December 18, 2020 the note payable of P1,000,000 was replaced by an 24-month note for the same amount.The Company had the right to refinance the note payable on Feb 28, 2021 for at least 13 months from report date.The note payable maturing on December 31, 2021, which was acquired on June 30, 2018. Was refinanced on December 24, 2020. With the agreement that the refinancing should not exceed 75% of the collateral provided by the company. The estimated value of the collateral as of December 31, 2020 is P1,800,000.How much is the total current liabilities as of December 31, 2020?

Liability is a sum of money an individual or organization owns. Current liabilities are an…

Answered: Note Company provided the following…

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 94PSA

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Note Company provided the following information on its notes payable as of December 31, 2020:
Note payable - due April 31, 2021		₱1,000,000
Note payable - due Feb 28, 2021		₱800,000
Note payable - due December 31, 2021	₱2,000,000

On December 18, 2020 the note payable of P1,000,000 was replaced by an 24-month note for the same amount.
The Company had the right to refinance the note payable on Feb 28, 2021 for at least 13 months from report date.
The note payable maturing on December 31, 2021, which was acquired on June 30, 2018. Was refinanced on December 24, 2020. With the agreement that the refinancing should not exceed 75% of the collateral provided by the company. The estimated value of the collateral as of December 31, 2020 is P1,800,000.

How much is the total current liabilities as of December 31, 2020?

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