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Compute for the current liabilities.

Compute for the current liabilities.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Y3
The ledger of DEF Company as of Dec. 31, 2021 includes the following: 10% Note payable 14% Mortgage note payable Interest payable 40,000 30,000 Additional information: DEF Co's financial statements were authorized for issue on Mar. 31, 2022 - the 10% notes payable is due on July 1, 2022 and pays semi-annual interest every July 1 and December 1. On Jan. 28, 2022, DEF Co. entered into a refinancing agreement with a ban to refinance the entire note by issuing a long-term obligation The 14% mortgage note is due on Dec 31, 2029. Per agreement with the creditor, DEF Co. is to pay quarterly interests on the note, failue to do so will rendr the note payable on demand. DEF Co. failed to pay the 3rd and 4th quarterly interest on the note during 2021. Required: Compute for the current liabilities.
Transcribed Image Text:The ledger of DEF Company as of Dec. 31, 2021 includes the following: 10% Note payable 14% Mortgage note payable Interest payable 40,000 30,000 Additional information: DEF Co's financial statements were authorized for issue on Mar. 31, 2022 - the 10% notes payable is due on July 1, 2022 and pays semi-annual interest every July 1 and December 1. On Jan. 28, 2022, DEF Co. entered into a refinancing agreement with a ban to refinance the entire note by issuing a long-term obligation The 14% mortgage note is due on Dec 31, 2029. Per agreement with the creditor, DEF Co. is to pay quarterly interests on the note, failue to do so will rendr the note payable on demand. DEF Co. failed to pay the 3rd and 4th quarterly interest on the note during 2021. Required: Compute for the current liabilities.
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