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show complete solutions please, thank you. On 6,500,000 3,000,000 Problem 2-20 (IAA) Kaye Company reported the following liabilities December 31, 2019: Accounts payable Bank note
show complete solutions please, thank you. On 6,500,000 3,000,000 Problem 2-20 (IAA) Kaye Company reported the following liabilities December 31, 2019: Accounts payable Bank note payable - 10% Bank note payable - 11% 5.000.000 Mortgage note payable - 10% 2.000.000 Bonds payable 4.000.000 The P3,000,000, 10% note was issued March 1, 2019, payable on demand. Interest is payable every six months. The one-year P5,000,000, 11% note was issued January 15, 2019. On December 31, 2019, the entity negotiated a written agreement with the bank to replace the note with a 2-year, P5,000,000, 10% note to be issued January 15, 2020. The 10% mortgage note was issued October 1, 2017 with a term of 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 10 days from the date the payment is due. On December 31, 2019, the entity is three months behind in paying the required interest payment. The bonds payable are ten-year, 8% bonds, issued June 30, 2010. Interest is payable semiannually on June 30 and December 31. * The entity has not prepared the adjustment for any accrued interest on the liabilities. What total amount should be reported as current liabilities on December 31, 2019? a. 15,650,000 b. 11,650,000 c. 20,650,000 d. 13,650,000 72
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