Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LMN Company provided the following account balance on December 31, 2020: Accounts payable P450,000 Notes payable 900,000 Income tax payable 96,000 Deferred tax liability 120,000
LMN Company provided the following account balance on December 31, 2020: Accounts payable P450,000 Notes payable 900,000 Income tax payable 96,000 Deferred tax liability 120,000 Further analysis of LMN Company' accounts revealed the following: Accounts payable included the following: Customer credit balance, P30,000. Debit balances in suppliers' accounts P80,000 which was deducted. Advances from shareholders, P200,000; call date April 1, 2022. Notes payable included the following: 6%, 3-year note, face amount P500,000 from Luck Company, due date March 31, 2021. On December 30, 2020, Soft Company and Luck Company signed a refinancing contract that will extend the due date to March 31, 2023. 8%, 3-year note, face amount P400,000 from Joy Company, due date August 1, 2021. On January 1, 2021, Soft Company and Joy Company completed a refinancing contract that will extend the due date to August 1, 2022. How much is the total current liabilities
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started