PELLUCID CLEAR Oo. has a 10%, P2,000,000 loan payable as of December 31, 20x1 which is maturing on July 1, 20x2. Interest on the loan is due every July 1 and December 31 and all the interests that have accrued in 20x1 were paid on these scheduled dates. On February 1, 20x2, PELLUCID Co. entered into a refinancing agreement with the bank to roll over the loan for another two years. PELLUCID Co. has the option to extend repayment under the existing loan agreement, subject only to very minimal conditions which relate to administrative tasks, such as filling-up of new loan forms and updating of borrower's information. PELLUCID Co.s financial statements were authorized for issue on March 15, 20x2. In PALLID's 20x1 financial statements, how much is presented as current liability in relation to the loan payable?
PELLUCID CLEAR Oo. has a 10%, P2,000,000 loan payable as of December 31, 20x1 which is maturing on July 1, 20x2. Interest on the loan is due every July 1 and December 31 and all the interests that have accrued in 20x1 were paid on these scheduled dates. On February 1, 20x2, PELLUCID Co. entered into a refinancing agreement with the bank to roll over the loan for another two years. PELLUCID Co. has the option to extend repayment under the existing loan agreement, subject only to very minimal conditions which relate to administrative tasks, such as filling-up of new loan forms and updating of borrower's information. PELLUCID Co.s financial statements were authorized for issue on March 15, 20x2. In PALLID's 20x1 financial statements, how much is presented as current liability in relation to the loan payable?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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In PALLID’s 20x1 financial statements, how much is presented as current liability in relation to the loan payable?
Transcribed Image Text:PELLUCID CLEAR Co. has a 10%, P2,000,000 loan payable as of December 31, 20x1 which is maturing on July
1, 20x2. Interest on the loan is due every July 1 and December 31 and all the interests that have accrued in
20x1 were paid on these scheduled dates. On February 1, 20x2, PELLUCID Co. entered into a refinancing
agreement with the bank to roll over the loan for another two years. PELLUCID Co. has the option to extend
repayment under the existing loan agreement, subject only to very minimal conditions which relate to
administrative tasks, such as filling-up of new loan forms and updating of borrower's information. PELLUCID
Co's financial statements were authorized for issue on March 15, 20x2. In PALLID's 20x1 financial statements,
how much is presented as current liability in relation to the loan payable?
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