An entity provided the following information on December 31, 2019:   Accounts payable                                                                                             2,000,000 Accrued expenses                                                                                               800,000 Bonds payable due December 31, 2020                                                    2,500,000 Premium on bonds payable                                                                              300,000 Deferred tax liability                                                                                             500,000 Income tax payable                                                                                         1 ,100,000 Cash dividend payable                                                                                        600,000 Share dividend payable                                                                                       400,000 Note payable - 6% due March 1, 2020                                                       1,500,000 Note payable – 8%  due October 1, 2020                                                   1,000,000                     The financial statements for 2019 were issued on March 31, 2020. On March 31, 2020, the 6% note payable was refinanced on a long term basis. Under the loan agreement for the 8% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2019. What amount should be reported as total current liabilities.  7,800,000    9,200,000    7,300,000    8,800,000    9,800,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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An entity provided the following information on December 31, 2019:

 

Accounts payable                                                                                             2,000,000

Accrued expenses                                                                                               800,000

Bonds payable due December 31, 2020                                                    2,500,000

Premium on bonds payable                                                                              300,000

Deferred tax liability                                                                                             500,000

Income tax payable                                                                                         1 ,100,000

Cash dividend payable                                                                                        600,000

Share dividend payable                                                                                       400,000

Note payable - 6% due March 1, 2020                                                       1,500,000

Note payable – 8%  due October 1, 2020                                                   1,000,000

 

 

                The financial statements for 2019 were issued on March 31, 2020. On March 31, 2020, the 6% note payable was refinanced on a long term basis. Under the loan agreement for the 8% note payable, the entity has the discretion to refinance the obligation for at least twelve months after December 31, 2019. What amount should be reported as total current liabilities.

 7,800,000

 

 9,200,000

 

 7,300,000

 

 8,800,000

 

 9,800,000
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