Problem 2-17 Willem Company reported the following on December 31, 2020: Accounts payable Short-term borrowings Bonds payable due 2022 Discount on bonds payable Mortgage payable, current portion P500,000 Bank loan, due June 30, 2021 The P1,000,000 bank loan was refinanced with a 5-year loan on December 31, 2020. The financial statements were issued March 1, 2021. 2,000,000 1,500,000 3,000,000 500,000 3,500,000 1,000,000 What total amount should be reported as current liabilities on December 31, 2020? a. 7,500,000 b. 5,000,000 c. 8,500,000 d. 4,000,000
Problem 2-17 Willem Company reported the following on December 31, 2020: Accounts payable Short-term borrowings Bonds payable due 2022 Discount on bonds payable Mortgage payable, current portion P500,000 Bank loan, due June 30, 2021 The P1,000,000 bank loan was refinanced with a 5-year loan on December 31, 2020. The financial statements were issued March 1, 2021. 2,000,000 1,500,000 3,000,000 500,000 3,500,000 1,000,000 What total amount should be reported as current liabilities on December 31, 2020? a. 7,500,000 b. 5,000,000 c. 8,500,000 d. 4,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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
Transcribed Image Text:Problem 2-17 (AICPA Adapted)
Willem Company reported the following on December 31,
2020:
2,000,000
1,500,000
3,000,000
500,000
3,500,000
1,000,000
Accounts payable
Short-term borrowings
Bonds payable due 2022
Discount on bonds payable
Mortgage payable, current portion P500,000
Bank loan, due June 30, 2021
The P1,000,000 bank loan was refinanced with a 5-year loan
on December 31, 2020. The financial statements were issued
March 1, 2021.
What total amount should be reported as current liabilities
on December 31, 2020?
a. 7,500,000
b. 5,000,000
c. 8,500,000
d. 4,000,000
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