Gara Co. reported the following liabilities at December 31, 20x1: Accounts payable-trade 750,000 Short-term borrowings 400,000 Bank loan, current portion ₱100,000 3,500,000 Other bank loan, matures June 30, 20x2 1,000,000 The bank loan of ₱3,500,000 was in violation of the loan agreement. The creditor had not waived the rights for the loan. What amount should Gara report as current liabilities at December 31, 20x1?
Gara Co. reported the following liabilities at December 31, 20x1: Accounts payable-trade 750,000 Short-term borrowings 400,000 Bank loan, current portion ₱100,000 3,500,000 Other bank loan, matures June 30, 20x2 1,000,000 The bank loan of ₱3,500,000 was in violation of the loan agreement. The creditor had not waived the rights for the loan. What amount should Gara report as current liabilities at December 31, 20x1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Gara Co. reported the following liabilities at December 31, 20x1:
|
Accounts payable-trade |
750,000 |
|
Short-term borrowings |
400,000 |
|
Bank loan, current portion ₱100,000 |
3,500,000 |
|
Other bank loan, matures June 30, 20x2 |
1,000,000 |
The bank loan of ₱3,500,000 was in violation of the loan agreement. The creditor had not waived the rights for the loan. What amount should Gara report as current liabilities at December 31, 20x1?
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