Problem 1-1 Eliot Company reported the following liablities on December 31, 2020: Accounts payable and accrued interest 12% note payable issued November 1, 2019 maturing July 1, 2021 10% debentures payable, next annual principal installment of P500,000 due February 1, 2021 1,000,000 2,000,000 7,000,000 On December 31, 2020, the entity consummated a noncancelable agreement with the lender to refinance the 12% note payable on a long-term basis. On December 31, 2020, what total amount should be reported as current liabilities? a. 3,500,000 b. 3,000,000 c. 1,500,000 d. 2,500,000

Problem 1-1 Eliot Company reported the following liablities on December 31, 2020: Accounts payable and accrued interest 12% note payable issued November 1, 2019 maturing July 1, 2021 10% debentures payable, next annual principal installment of P500,000 due February 1, 2021 1,000,000 2,000,000 7,000,000 On December 31, 2020, the entity consummated a noncancelable agreement with the lender to refinance the 12% note payable on a long-term basis. On December 31, 2020, what total amount should be reported as current liabilities? a. 3,500,000 b. 3,000,000 c. 1,500,000 d. 2,500,000

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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