31,2021 ( interest is payable annually) b.) 12%,P 2,500,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually) c.) P 750,000 interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2021 ( interest is payable annually) d.) 12%,P 1,500,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually) From the above notes: - The note issued on a.) is extended for 2 more years. The company has the discretion to defer settlement of the obligation for more than 12 months. - The note issued on c.) is extended for 3 more years and this agreement was done on January 15,2021. How much should be presented as part of the current liabilities as of December 31,2020?
The following are the notes issued as of December 31,2020:
a.) 10% , P 1,000,000 interest bearing note , issuance date: Jan.1,2019 ; due: December 31,2021 ( interest is payable annually)
b.) 12%,P 2,500,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually)
c.) P 750,000 interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2021 ( interest is payable annually)
d.) 12%,P 1,500,000, interest bearing note , issuance date: Jan.1,2020 ; due: December 31,2024 (equal annual installments and interest are to be paid annually)
From the above notes:
- The note issued on a.) is extended for 2 more years. The company has the discretion to defer settlement of the obligation for more than 12 months.
- The note issued on c.) is extended for 3 more years and this agreement was done on January 15,2021.
How much should be presented as part of the current liabilities as of December 31,2020?
Step by step
Solved in 2 steps
