At the financial statement date of December 31, 2020, the liabilities outstanding of Chizkeyk Co. included the following: 1. Cash dividends on ordinary shares, P60,000, payable on January 15, 2021. 2. Note payable to China Bank, P470,000, due January 20, 2021. 3. Serial bonds, P1,000,000, of which P250,000 mature during 2021. 4. Note payable to
At the financial statement date of December 31, 2020, the liabilities outstanding of Chizkeyk Co. included the following:
1. Cash dividends on ordinary shares, P60,000, payable on January 15, 2021.
2. Note payable to China Bank, P470,000, due January 20, 2021.
3. Serial bonds, P1,000,000, of which P250,000 mature during 2021.
4. Note payable to Eastwest Bank, P300,000, due January 27, 2022.
In addition to the transactions above, the following activities occurred early in 2021: January 25: The company entered into a financing agreement with China Bank, enabling it to borrow up to P500,000 at any time through the end of 2023. Amounts borrowed under the agreement would bear interest at 1% above the bank's prime rate and would mature 3 years from the date of the loan. The company immediately borrowed P400,000 to replace the cash used in paying its January 20 note to the bank.
February 1: The financial statements for 2020 were issued.
1. Compute for the total current liabilities
2. Compute for the total non-current liabilities.
3. Compute for the total liabilities.
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