On July 1, 2014, Mark Company acquired machinery worth P 2,500,000 from Julian Corporation.Terms of the contract calls for a down-payment of P 500,000 and signing a 2-year 10% notepayable for the balance. Interest is payable quarterly. The existing loan agreement does not carrya provision to refinance. During September, Mark was experiencing financial difficulty and wasunable to pay the periodic interest.What total amount of current liability should Mark Company report in its December 31, 2014statement of financial position assuming Julian Company agreed after the balance sheet date butbefore the financial statements authorized to issue not to demand payment as a consequence ofthe breach?а.Noneb. P 2,000,000P 100,000d. P 2, 100,000с.

Note payable=Equipment value-Down payment=P 2,500,000-P 500,000=P 2,000,000

Answered: On July 1, 2014, Mark Company acquired…

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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