You company provided the following information on Dec. 31, 2019: Accounts Payable Bank note payable - 10% 6,500,000 3,000,000 Bank note payable- 11% Interest Payable 5,000,000 150,000 Mortgage note payable - 10% Bonds Payable 2,000,000 4,000,000 * The P 3,000,000, 10% was issued March 1, 2019, payable on demand. Interest is payable every six months. The one- year P 5,000,000,11% note was issued January 15, 2019. On Dec. 31, 2019, the entity negotiated a written agreement with the bank to replace the note with a 2-year, P 5,000,000, 10% note to be issued January 15, 2020. * The 10% mortgage note was issued Oct. 1, 2015, with a termof 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within the 10 days from the date the payment is due. On Dec. 31, 2019, the entity is three months behind in making the required interest payment. * The bonds payable are ten-year, 8% bonds, issued June 30, 2009. Interest is payable semi annually on June 30 and Dec. 31. What amount should be reported as total current liabilities?

You company provided the following information on Dec. 31, 2019: Accounts Payable Bank note payable - 10% 6,500,000 3,000,000 Bank note payable- 11% Interest Payable 5,000,000 150,000 Mortgage note payable - 10% Bonds Payable 2,000,000 4,000,000 * The P 3,000,000, 10% was issued March 1, 2019, payable on demand. Interest is payable every six months. The one- year P 5,000,000,11% note was issued January 15, 2019. On Dec. 31, 2019, the entity negotiated a written agreement with the bank to replace the note with a 2-year, P 5,000,000, 10% note to be issued January 15, 2020. * The 10% mortgage note was issued Oct. 1, 2015, with a termof 10 years. Terms of the note give the holder the right to demand immediate payment if the entity fails to make a monthly interest payment within the 10 days from the date the payment is due. On Dec. 31, 2019, the entity is three months behind in making the required interest payment. * The bonds payable are ten-year, 8% bonds, issued June 30, 2009. Interest is payable semi annually on June 30 and Dec. 31. What amount should be reported as total current liabilities?

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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