Note Company provided the following information on its notes payable as of December 31, 2020: Note payable - due April 31, 2021 ₱1,000,000 Note payable - due Feb 28, 2021 ₱800,000 Note payable - due December 31, 2021 ₱2,000,000 On December 18, 2020 the note payable of P1,000,000 was replaced by an 24-month note for the same amount. The Company had the right to refinance the note payable on Feb 28, 2021 for at least 13 months from report date. The note payable maturing on December 31, 2021, which was acquired on June 30, 2018. Was refinanced on December 24, 2020. With the agreement that the refinancing should not exceed 75% of the collateral provided by the company. The estimated value of the collateral as of December 31, 2020 is P1,800,000. How much is the total current liabilities as of December 31, 2020?
Note Company provided the following information on its notes payable as of December 31, 2020: Note payable - due April 31, 2021 ₱1,000,000 Note payable - due Feb 28, 2021 ₱800,000 Note payable - due December 31, 2021 ₱2,000,000 On December 18, 2020 the note payable of P1,000,000 was replaced by an 24-month note for the same amount. The Company had the right to refinance the note payable on Feb 28, 2021 for at least 13 months from report date. The note payable maturing on December 31, 2021, which was acquired on June 30, 2018. Was refinanced on December 24, 2020. With the agreement that the refinancing should not exceed 75% of the collateral provided by the company. The estimated value of the collateral as of December 31, 2020 is P1,800,000. How much is the total current liabilities as of December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Note Company provided the following information on its notes payable as of December 31, 2020: | |||||
| Note payable - due April 31, 2021 | ₱1,000,000 | ||||
| Note payable - due Feb 28, 2021 | ₱800,000 | ||||
| Note payable - due December 31, 2021 | ₱2,000,000 | ||||
| On December 18, 2020 the note payable of P1,000,000 was replaced by an 24-month note for the same amount. | |||||
| The Company had the right to refinance the note payable on Feb 28, 2021 for at least 13 months from report date. | |||||
| The note payable maturing on December 31, 2021, which was acquired on June 30, 2018. Was refinanced on December 24, 2020. With the agreement that the refinancing should not exceed 75% of the collateral provided by the company. The estimated value of the collateral as of December 31, 2020 is P1,800,000. |
How much is the total current liabilities as of December 31, 2020?
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