Included in Vulnerable Corporation's liability account balances at December 31, 2020, were the following: 8% note payable issued October 1, 2020, maturing September 30, 2021 P500,000 10% note payable issued April 1, 2020, payable in six equal annual installments of P150,000 beginning April 1, 2021 900,000 12% Bonds payable issued on March 1, 2017, maturing on March 1, 2021 1,500,000 The bonds payable pay interest semi-annually on March 1 and September 1. Based on the above information, what amount of current liabilities should be included as of December 31, 2020? a. P2,287,500 c. P2,900,000 b. P3,037,500 d. P2,012,500
Included in Vulnerable Corporation's liability account balances at December 31, 2020, were the following: 8% note payable issued October 1, 2020, maturing September 30, 2021 P500,000 10% note payable issued April 1, 2020, payable in six equal annual installments of P150,000 beginning April 1, 2021 900,000 12% Bonds payable issued on March 1, 2017, maturing on March 1, 2021 1,500,000 The bonds payable pay interest semi-annually on March 1 and September 1. Based on the above information, what amount of current liabilities should be included as of December 31, 2020? a. P2,287,500 c. P2,900,000 b. P3,037,500 d. P2,012,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Included in Vulnerable Corporation's liability account balances at December 31, 2020, were the following:
8% note payable issued October 1, 2020, maturing September 30, 2021 P500,000
10% note payable issued April 1, 2020, payable in six equal annual
installments of P150,000 beginning April 1, 2021 900,000
12% Bonds payable issued on March 1, 2017, maturing on March 1, 2021 1,500,000
The bonds payable pay interest semi-annually on March 1 and September 1.
Based on the above information, what amount of current liabilities should be included as of December 31, 2020?
a. P2,287,500 c. P2,900,000
b. P3,037,500 d. P2,012,500
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