See the attached photo for the problemRequired:a. Compute the total current liabilities on December 31, 2020b. Determine the interest expense to be reported in 2020. Problem 1On Jan. 1, 2020, Aldama Company has a note payable to bank in the amount of Php2,800,000.Transactions during 2020 and other information relating to liabilities are:- Principal amount of the note payable to bank is Php2.8M and bears a 12% interest. The noteis dated April 1, 2019 and is payable in four equal annual installments beginning April 1, 2020.The first principal and interest payment was made on April 1, 2020.- On July 1, 2020, the entity issued for Php1,774,000 a Php2,000,000 face amount note to awealthy shareholder. The note was dated July 1, 2020 and matures on July 1, 2021. No explicitinterest rate is stated in the note and the entire face amount of the note payable is atmaturity date

Current Liabilities Current Liabilities of the business which can be determined by within one year…

Answered: See the attached photo for the problem…

See the attached photo for the problem Required: a. Compute the total current liabilities on December 31, 2020 b. Determine the interest expense to be reported in 2020.

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 78E

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Question

See the attached photo for the problem

Required:

a. Compute the total current liabilities on December 31, 2020

b. Determine the interest expense to be reported in 2020.

Problem 1
On Jan. 1, 2020, Aldama Company has a note payable to bank in the amount of Php2,800,000.
Transactions during 2020 and other information relating to liabilities are:
- Principal amount of the note payable to bank is Php2.8M and bears a 12% interest. The note
is dated April 1, 2019 and is payable in four equal annual installments beginning April 1, 2020.
The first principal and interest payment was made on April 1, 2020.
- On July 1, 2020, the entity issued for Php1,774,000 a Php2,000,000 face amount note to a
wealthy shareholder. The note was dated July 1, 2020 and matures on July 1, 2021. No explicit
interest rate is stated in the note and the entire face amount of the note payable is at
maturity date

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