provided the following information on December 31, 2021: Accounts payable, net of creditors’ debit balance of P 200,000…P 2,000,000 Accrued expenses……………………………………………………... 800,000 Bonds payable due December 31, 2023……………………………. 4,500,000 Premium on bonds payable………………………………………….. 500,000 Deferred tax liability………………………………………………….. 500,000 Income tax payable…………………………………………………… 1,100,000 Cash dividend payable………………………………………………. 600,000 Share dividend distributable………………………………………… 400,000 Notes payable-6% due March 1, 2022…………………………….. 1,500,000 Notes payable-8% due October 1, 2022………………………….. 1,000,000 The financial statements for 2021 were issued on March 1, 2022. On December 31, 2021, the 6% note payable was refinanced on a long-term basis. Under the loan agreement, the entity has the right on December 31, 2021 to roll over the 8% note payable for at least 12 months after December 31,2021. At what amount should the total current liabilities be presented in the statement of financial position of Messier Inc.’s as of December 31, 2021?
- provided the following information on December 31, 2021:
Accounts payable, net of creditors’ debit balance of P 200,000…P 2,000,000
Accrued expenses……………………………………………………... 800,000
Bonds payable due December 31, 2023……………………………. 4,500,000
Premium on bonds payable………………………………………….. 500,000
Income tax payable…………………………………………………… 1,100,000
Cash dividend payable………………………………………………. 600,000
Share dividend distributable………………………………………… 400,000
Notes payable-6% due March 1, 2022…………………………….. 1,500,000
Notes payable-8% due October 1, 2022………………………….. 1,000,000
- The financial statements for 2021 were issued on March 1, 2022.
- On December 31, 2021, the 6% note payable was refinanced on a long-term basis.
- Under the loan agreement, the entity has the right on December 31, 2021 to roll over the 8% note payable for at least 12 months after December 31,2021.
At what amount should the total current liabilities be presented in the
2.
- provided the following information on December 31, 2021:
Accounts payable………………………….P 6,500,000
Bank note payable-10%.......................... 3,000,000
Bank note payable-11%......................... 5,000,000
Mortgage note payable-10%.................. 2,000,000
Bonds payable…………………………….. 4,000,000
- The P 3,000,000, 10% note was issued March 1, 2021 payable on demand. Interest is payable every 6 months.
- The one-year P 5,000,000, 11% note was issued on January 15, 2021. On December 31, 2021, the entity negotiated a written agreement with the bank to replace the note with a 2-year P 5,000,000, 10% note to be issued on January 15, 2022.
- The 10% mortgage note was issued on October 1, 2018 with a term of 10 years. Term of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within 10 days from the date the payment is due. On December 31, 2021 the entity is three months behind in making the required interest payment.
- Thhe bonds payable are 10-year 8% bonds, issued on June 30, 2012. Interest is payable semi-annually on June 30 and December 31.
What amount should Sobrero Inc. report as total current liabilities?
3,
- Milky Way Inc. provided the following information on December 31, 2021:
Employee income taxes withheld………………….P 900,000
Cash balance at BPI-Leon Guinto Branch..………. 2,500,000
Cash overdraft at BDO-A. Mabini Branch……….. 1,300,000
Estimated amount of meeting warranties……...... 500,000
Estimated damages as a result of unsatisfactory... 1,500,000
Accounts payable…………………………………… 3,000,000
Deferred serial bonds, issued at par and bearing
interest at 12%, payable in semi-annual
installments of P 500,000 due April 1and
October 1 of each, the last bond to be paid
on October 1, 2027. Interest is also paid
semi-annually…………………………………… 5,000,000
What amount should be reported as total current liabilities on December 31, 2021?
4.
- reported the following liability balances on December 31, 2021:
10% note payable issued on October 1, 2020,
maturing October 1, 2022………………………………P 2,000,000
12% note payable issued on March 1, 2020,
on March 1, 2022……………………………………….. 4,000,000
The 2021 financial statements were issued on March 31, 2022.
Under the loan agreement, the entity has the right on December 31, 2021 to roll over the 10%
note payable for at least 12 months after December 31, 2021.
On March 1, 2022, entire P 4,000,000 balance of the 12% note payable was refinanced
through issuance of a long-term obligation payable lump-sum.
What amount of the notes payable should be classified as current on December 31, 2021?
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