Multiple Company provided the following information on December 31, 2020: Accounts payable after deducting debit balances in supplier's accounts of P100,000 P500,000 Accrued liabilities P50,000 Note payable - due March 31, 2021 P1,000,000 Note payable - due May 31, 2023 P800,000 Note payable - due December 31, 2022 P2,000,000 On December 27, 2020 the note payable of P1,000,000 was replaced by an 18-month note for the same amount. During November 1, 2020, the Company breached a covenant pertaining to the May 31, 2023 note, making it due and demandable. On December 24, 2020, the creditor agreed to not to demand payment for 13 months from the date of breach. The note payable maturing on December 31, 2022, which was acquired on June 30, 2018. The creditor has the right to call the note 36 months from issuance. How much is the total current liabilities as of December 31, 202O?
Multiple Company provided the following information on December 31, 2020: Accounts payable after deducting debit balances in supplier's accounts of P100,000 P500,000 Accrued liabilities P50,000 Note payable - due March 31, 2021 P1,000,000 Note payable - due May 31, 2023 P800,000 Note payable - due December 31, 2022 P2,000,000 On December 27, 2020 the note payable of P1,000,000 was replaced by an 18-month note for the same amount. During November 1, 2020, the Company breached a covenant pertaining to the May 31, 2023 note, making it due and demandable. On December 24, 2020, the creditor agreed to not to demand payment for 13 months from the date of breach. The note payable maturing on December 31, 2022, which was acquired on June 30, 2018. The creditor has the right to call the note 36 months from issuance. How much is the total current liabilities as of December 31, 202O?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Multiple Company provided the following information on December 31, 2020:
Accounts payable after deducting debit balances in supplier's accounts
of P100.000
Accrued liabilities
Note payable - due March 31. 2021
Note payable - due May 31, 2023
Note payable - due December 31, 2022
P500.000
P50.000
P1.000.000
P800.000
P2.000.000
On December 27, 2020 the note payable of P1,000,000 was replaced by an 18-month note
for the same amount.
During November 1, 2020, the Company breached a covenant pertaining to the May 31,
2023 note, making it due and demandable. On December 24, 2020, the creditor agreed to
not to demand payment for 13 months from the date of breach.
The note payable maturing on December 31, 2022, which was acquired on June 30, 2018.
The creditor has the right to call the note 36 months from issuance
How much is the total current liabilities as of December 31. 2020?
Transcribed Image Text:Multiple Company provided the following information on December 31, 2020:
Accounts payable after deducting debit balances in supplier's accounts
of P100,000
P500,000
Accrued liabilities
P50,000
Note payable - due March 31, 2021
P1,000,000
Note payable - due May 31, 2023
P800,000
Note payable - due December 31, 2022
P2,000,000
On December 27, 2020 the note payable of P1,000,000 was replaced by an 18-month note
for the same amount.
During November 1, 2020, the Company breached a covenant pertaining to the May 31,
2023 note, making it due and demandable. On December 24, 2020, the creditor agreed to
not to demand payment for 13 months from the date of breach.
The note payable maturing on December 31, 2022, which was acquired on June 30, 2018.
The creditor has the right to call the note 36 months from issuance.
How much is the total current liabilities as of December 31, 202O?
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